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Health Econ > Skeleton notes #1 > Flashcards

Skeleton notes #1 Flashcards

1
Q

In perfect competition, there are many similar…?
(assumptions)

A

buyers and sellers

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2
Q

In perfect competition , there are ____________________ within the market (assumptions)

A

homogeneous products or services

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3
Q

In perfect competition, there are ______________________ about quality, price, options, and competition
(assumptions)

A

good flows of information

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4
Q

In perfect competition, ______________ out of market transactions and ventures.
(assumptions)

A

free entry into and exit

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5
Q

the result of well functioning markets is a process of ________ where consumers with the most _________ and producers with the most ___________ end up “in the market”.

A

rationing
desire
effective costs

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6
Q

Insurance, pharmaceutical, hospital, and physical markets in reality are a….?
(chop away the assumptions underpinning perfect markets)

A

“Monopoly”

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7
Q

In insurance, pharmaceutical, hospital, and physician markets there is no shopping and no ________.
(chop away the assumptions underpinning perfect markets)

A

free exit

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8
Q

different possible treatments can be ________, these markets are not ____________.
(chop away the assumptions underpinning perfect markets)

A

consumed
homogeneous

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9
Q

difficult ______________ that a consumer/patient might not have about their illness, lack of ___________ to check pricing; insurance and practitioner ____________; lots of _____________
(chop away the assumptions underpinning perfect markets)

A

technical information
ability/time
obscuring prices
uncertainty

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10
Q

inability for competitors to _____________ of healthcare and for consumers to ______________:
(hard for new healthcare companies to start)
(chop away the assumptions underpinning perfect markets)

A

enter into supply
exit situations

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11
Q

the ________________ (costs and benefits that are not properly accounted for by the market).
(chop away the assumptions underpinning perfect markets)

A

problem of externality

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12
Q

the ________________ (market models assume that demand curves are indicative of willingness-to-pay rather than ability-to-pay).
(chop away the assumptions underpinning perfect markets)

A

problem of inequality

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13
Q

we try to use the scientific method in economics to establish_________ between things, to differentiate effective treatments, policies, and programs from ____ ones.
(ineffective, costly, harmful)

A

causality
spurious

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14
Q

_____________ have the best potential to establish causality, although economists and statisticians use other statistical and research design methods (such as regression analysis) to look for causal links.

A

randomized control trials

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15
Q

people tend to use _____ to think about the causality between a treatment and outcome… this is very ______ (time helps us)

A

anecdotes
problematic

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16
Q

What are the steps in replication?

A

Theory - math methods

hypothesis

empirical research - data on outcomes

confirm or revise

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17
Q

demand theory predicts which causal relationship in the market for healthcare: that ____ prices lead to _____ utilization (usage) of care.

A

lower
higher

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18
Q

give an example inelastic demand

A

Insulin - demand will go up but the number who use and need it remains almost the same because insulin is essential to those who need it

lower price -> higher usage

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19
Q

give an example elastic demand

A

preventative care - if the price is lower people are more likely to use preventative care to PREVENT future sickness

lower price -> higher usage

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20
Q

is the demand for insulin elastic or inelastic?

the graph would look like
A or B?

A

inelastic
A

21
Q

Is the demand for contacts elastic or inelastic?

the graph would look like A or B?

A

elastic
B

22
Q

Suppose an experiment randomized outpatient visit prices for a number of patients in Pennsylvania. Group A can visit their physician for $20 per visit; research finds that the they average 3 visits per year. Group B can visit their physician for $10 per visit; researchers find that they average 4 visits per year.

Find the price elasticity of demand for outpatient care.

A

PED = %changeQuant / %change$

Quantity (4-3)/(average 3,4) = 1 / 3.5

Price (10-20)/(average 10,20) = -10/15

(1/3.5) / (-10/15) = -3/7

inelastic because less than 1

23
Q

Suppose an experiment randomized outpatient visit prices for a number of patients in Pennsylvania. Group A can visit their physician for $20 per visit; research finds that the they average 3 visits per year. Group B can visit their physician for $10 per visit; researchers find that they average 4 visits per year.

PED = -3/7

perhaps physicians feel the need to raise their prices to save up for future apocalypse. Suppose they raise their prices 40% per visit. predict the likely effect on yearly visits. how many times will a group b family now likely go to the doctor?

A

PED = -3/7

-3/7 = %changequant / 40%

-3/7 x 4/10 = -12/70

group b goes from visiting 4 times to 12/70 visits.

24
Q

what are spurious treatments?

A

ineffective, costly, harmful, with no real causality

25
Q

What is the goal of replication

A

find better treatments, policies, programs

26
Q

In regards to utilization of care what are the two facets of supply and demand? How are they different

A

Usage and access?

27
Q

suppose 1 million people require insulin on a monthly basis. when prices are high, around $100. a few people can’t afford this need. when prices fall to $35, more people that need it can get it on the market.

Is the demand for insulin is price elastic or inelastic and why?

Would the graph look like A or B?

A

Insulin is inelastic, this is because it is essential for people who use it. so despite price you will have most people requiring insulin using it. When the price drops, the people who couldn’t afford it can but most people will buy insulin despite the price because it is essential to them.

A

28
Q

Would the demand for a product like contact lenses be price elastic or inelastic and why?

Would the graph look like A or B?

A

the demand for contacts would be elastic, this is because if the cost is high you can buy less contacts, since they are not essential. You could also substitute this product with glasses. when the price drops you can buy and when the price goes up you just use glasses.

B

29
Q

Establish causality program and internal validity

A

randomized control trials

30
Q

TI: Pain = 6
T2: Pain = 3
C1: Pain = 6
C2: Pain = 4

Treatment is for a pain med using a subjective pain scale 1-10

Using the difference in difference method what is the isolated effect of treatment

A

3-6= -3
4-6= -2
-3 - (-2)
-1

31
Q

What are some weaknesses of randomized control trials

A

costly, does not address external validity (replication)

32
Q

What is the Oregon Medicaid study

A

This randomized, controlled study showed that Medicaid coverage generated no significant improvements in measured physical health outcomes in the first 2 years, but it did increase use of health care services, raise rates of diabetes detection and management, lower rates of depression, and reduce financial strain.

33
Q

which segment of the population induces the most healthcare spending in the US and when do they do it

A

Over 65, end of life

34
Q

What are the 8 reasons the US spends more than simular countries on healthcare

A

higher administrative cost
higher ratio of specialists
more stand by capacity
OPEN ENDED FUNDING
less social support for poor/sick
more malpractice suits
higher drug prices
higher physician incomes

35
Q

who does fuchs think are the key to controlling healthcare spending

A

the physician

36
Q

in the US, the private market for insurance has been ________ even since the Affordable Care Act

A

increasing

37
Q

greater coverage leads to higher utilization BUT _________ costs

A

higher
(vicious cycle)

38
Q

What was the primary goal of Obamacare

A

reduce number of uninsured

39
Q

What are the 4 Cs of reform

A

coverage
cost contol
coordinated care
choice

40
Q

the primary problem of healthcare costs in every country

A

new technology (drugs, treatments)

41
Q

fuchs says that the economic point of view is rooted in 3 observations:

A

scarcity
alternative uses (resources)
people have different wants

42
Q

What do the romantic and monotechnic points of view both deny

A

deny reality of scarcity and competing wants

43
Q

In regards to utilization, for the terms access and usage, which is supply and demand

A

Access - supply
Usage - demand

44
Q

What are Fuchs 5 strategies to contain healthcare costs; what would the graphs look like

A

look to changes in supply to drive down price/cost (# hospitals, physicians = supply up)

reduce utilization by improving health of population (improve health = demand down)

administrative controls and planning to contain costs (demand down; supply up)

induce greater cost-consciousness (demand down)

look to physician to control costs (demand down)

45
Q

what is the reasoning to give a family in poverty $100 cash rather than $100 worth of health benefits

A

they can use entire sum to buy more health care or increase many other commodities as well.

can spend on healthcare or other needs

46
Q

what does fuchs mean that health is a form of capital

A

health is weath, we invest in our health through immunization, annual checkups, and exercise. they have costs but yield benefits in the furture

47
Q

depict the graph of the supply and demand of healthcare

A

-

48
Q

fuchs suggests that medical care played _____________________ in the decline of infant mortality

A

almost no role

49
Q
A

Health Econ (8 decks)

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