Incentives and Choice in Health Care

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  • Format: Paperback
  • Copyright: 2008-07-31
  • Publisher: Mit Pr

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A vast body of empirical evidence has accumulated demonstrating that incentives affect health care choices made by both consumers and suppliers of health care services. Decisions in health care are affected by many types of incentives, such as the rate of return pharmaceutical manufacturers expect on their investments in research and development, or disincentives, such as increases in copayments patients must make when they visit physicians or are admitted to hospitals. In this volume, leading scholars in health economics review these new and important results and describe their own recent research assessing the role of incentives in health care markets and decisions people make that affect their personal health. The contexts include demand decisions--choices made by individuals about health care services they consume and the health insurance policies they purchase--and supply decisions made by medical students, practicing physicians, hospitals, and pharmaceutical manufacturers. Researchers and students of health economics and policy makers will find this book a valuable resource, both for learning economic concepts, particularly as they apply to health care, and for reading up-to-date summaries of the empirical evidence. General readers will find the book's chapters accessible, interesting, and useful for gaining an understanding of the likely effects of alternative health care policies. Contributors: Henry J. Aaron, Ernst R. Berndt, John Cawley, Julie M. Donohue, Donna Gilleskie, Brian R. Golden, Gautam Gowrisankaran, Chee-Ruey Hsieh, Hirschel Kasper, Thomas G. McGuire, Joseph P. Newhouse, Sean Nicholson, Mark V. Pauly, Anna D. Sinaiko, Frank Sloan

Table of Contents

Prefacep. vii
Acknowledgmentsp. xi
Contributorsp. xiii
Introductionp. 1
To Find the Answer, One Must Know the Questionp. 21
Health Economics and Public Policy
Health Capitalp. 51
Theory and Empirical Evidence
What We Know and Don't Know about the Effects of Cost Sharing on the Demand for Medical Care-and So What?p. 85
Adverse Selection and Moral Hazardp. 103
Implications for Health Insurance Markets
Direct-to-Consumer Advertising in Health Carep. 131
An Overview of Economic Issues
Reefer Madness, Frank the Tank, or Pretty Womanp. 163
To What Extent Do Addictive Behaviors Respond to Incentives?
Medical Career Choices and Rates of Returnp. 195
The Effects of Incentives on Pharmaceutical Innovationp. 227
Physician Fees and Behaviorp. 263
Implications for Structuring a Fee Schedule
Physician Pay for Performancep. 289
Alternative Perspectives
Competition, Information Provision, and Hospital Qualityp. 319
Summing Upp. 353
Referencesp. 371
Indexp. 407
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