HANDBOOK OF HEALTH ECONOMICS VOLUME 1A This Page Intentionally Left Blank HANDBOOK OF HEALTH ECONOMICS VOLUME 1A Edited by ANTHONY J CULYER University of York and JOSEPH P NEWHOUSE Harvard University Medical School 2000 ELSEVIER AMSTERDAM • LAUSANNE • NEW YORK • OXFORD • SHANNON • SINGAPORE • TOKYO ELSEVIER SCIENCE B.V Sara Burgerhartstraat 25 P.O Box 211, 1000 AE Amsterdam, The Netherlands © 2000 Elsevier Science B.V All rights reserved This work is protected under copyright by Elsevier Science, and the following terms and conditions apply to its use: Photocopying Single photocopies of single chapters may be made for personal use as allowed by national copyright laws Permission of the Publisher and payment of a fee is required for all other photocopying, including multiple or systematic copying, copying for advertising or promotional purposes, resale, and all forms of document delivery Special rates are available for educational institutions that wish to make photocopies for 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in the material herein Because of rapid advances in the medical sciences, in particular, independent verification of diagnoses and drug dosages should be made First edition 2000 Library of Congress Cataloging-in-Publication Data A catalog record from the Library of Congress has been applied for ISBN: 0-444-82290-9 (set, comprising vols 1A + 1B) ISBN: 0-444-50470-2 (vol 1A) ISBN: 0-444-50471-0 (vol 1B) ∞ The paper used in this publication meets the requirements of ANSI/NISO Z39.48-1992 (Permanence of Paper) Printed in The Netherlands INTRODUCTION TO THE SERIES The aim of the Handbooks in Economics series is to produce Handbooks for various branches of economics, each of which is a definitive source, reference, and teaching supplement for use by professional researchers and advanced graduate students Each Handbook provides self-contained surveys of the current state of a branch of economics in the form of chapters prepared by leading specialists on various aspects of this branch of economics These surveys summarize not only received results but also newer developments, from recent journal articles and discussion papers Some original material is also included, but the main goal is to provide comprehensive and accessible surveys The Handbooks are intended to provide not only useful reference volumes for professional collections but also possible supplementary readings for advanced courses for graduate students in economics KENNETH J ARROW and MICHAEL D INTRILIGATOR PUBLISHER’S NOTE For a complete overview of the Handbooks in Economics Series, please refer to the listing on the last two pages of this volume v This Page Intentionally Left Blank CONTENTS OF THE HANDBOOK VOLUME 1A Introduction The State and Scope of Health Economics ANTHONY J CULYER and JOSEPH P NEWHOUSE PART – OVERVIEWS AND PARADIGMS Chapter International Comparisons of Health Expenditure ULF-G GERDTHAM and BENGT JÖNSSON Chapter An Overview of the Normative Economics of the Health Sector JEREMIAH HURLEY Chapter Medical Care Prices and Output ERNST R BERNDT, DAVID M CUTLER, RICHARD G FRANK, ZVI GRILICHES, JOSEPH P NEWHOUSE and JACK E TRIPLETT Chapter Advances in CE Analysis ALAN M GARBER Chapter Information Diffusion and Best Practice Adoption CHARLES E PHELPS Chapter Health Econometrics ANDREW M JONES PART – DEMAND AND REIMBURSEMENT FOR MEDICAL SERVICES Chapter The Human Capital Model MICHAEL GROSSMAN Chapter Moral Hazard and Consumer Incentives in Health Care PETER ZWEIFEL and WILLARD G MANNING vii viii Contents of the Handbook Chapter Physician Agency THOMAS G McGUIRE Chapter 10 Insurance Reimbursement MARK V PAULY PART – INSURANCE MARKETS, MANAGED CARE, AND CONTRACTING Chapter 11 The Anatomy of Health Insurance DAVID M CUTLER and RICHARD J ZECKHAUSER Chapter 12 Health Insurance and the Labor Market JONATHAN GRUBER Chapter 13 Managed Care SHERRY GLIED Chapter 14 Risk Adjustment in Competitive Health Plan Markets WYNAND P.M.M VAN DE VEN and RANDALL P ELLIS Chapter 15 Government Purchasing of Health Services MARTIN CHALKLEY and JAMES M MALCOMSON VOLUME 1B PART – SPECIFIC POPULATIONS Chapter 16 Economics and Mental Health RICHARD G FRANK and THOMAS G McGUIRE Chapter 17 Long-Term Care EDWARD C NORTON Chapter 18 The Economics of Disability and Disability Policy ROBERT HAVEMAN and BARBARA WOLFE Chapter 19 Child Health in Developed Countries JANET CURRIE Contents of the Handbook PART – THE MEDICAL CARE MARKET Chapter 20 The Industrial Organization of Health Care Markets DAVID DRANOVE and MARK A SATTERTHWAITE Chapter 21 Not-For-Profit Ownership and Hospital Behavior FRANK A SLOAN Chapter 22 Economics of General Practice ANTHONY SCOTT Chapter 23 Waiting Lists and Medical Treatment JOHN G CULLIS, PHILIP R JONES and CAROL PROPPER Chapter 24 Economics of Dental Services HARRI SINTONEN and ISMO LINNOSMAA Chapter 25 The Pharmaceutical Industry F.M SCHERER PART – LAW AND REGULATION Chapter 26 Liability for Medical Malpractice PATRICIA M DANZON Chapter 27 Antitrust and Competition in Health Care Markets MARTIN GAYNOR and WILLIAM B VOGT Chapter 28 Regulation of Prices and Investment in Hospitals in the U.S DAVID S SALKEVER PART – HEALTH HABITS Chapter 29 The Economics of Smoking FRANK J CHALOUPKA and KENNETH E WARNER Chapter 30 Alcohol PHILIP J COOK and MICHAEL J MOORE ix I-72 – dental services, inputs and outcomes 1256 – health expenditure 14, 850 – long-term care for elderly 963 – medical malpractice in 1344 – – liability for 1392–1395 – – no-fault programs 1379–1380 – prioritisation of waiting lists 1241 no-envy principle and equity in health 1892–1893 No-Net-Cost Tobacco Program Act (USA, 1982) 1602 nonmarket efficiency in human capital model 371–374, 382, 391 nonparametric estimators in health econometrics 270, 272–274 nonprice competition in not-for-profit hospitals 1167 normative economics of health sector 55–118 – efficiency and normative framework 59–66 – – neo-classical welfare framework 60–62 – – welfare economics and extra-welfareism 62–66 – equity in health sector 87–96 – – allocation according to need 90–92 – – equality of access 89–90 – – equality of health 92–94 – – rival notions of 95–96 – health care as economic commodity 67–87 – – derived demand for 68–70 – – externalities 70–73 – – informational asymmetry 73–79 – – – supplier-induced demand 78–79 – – uncertainty 79–87 – – – economies of scale 81–82 – – – insurance, welfare improving effects 80–81 – – – moral hazard 83–87 – – – risk selection 82–83 – programs and interventions, evaluation 96–107 – – equity and methods 104–107 Norway – dental services, inputs and outcomes 1256 – health expenditure 14, 850 – long-term care for elderly 963 – payment systems in general practice 1188 not-for-profit firms 1418 not-for-profit hospitals 1141–1174 – competition, role of 1167–1168 – dominance of 1148–1153 – – best rationale 1153 – – cartel theory 1152 – – explicit subsidies 1151 Subject Index – – fiduciary relationships 1148–1150 – – implicit subsidies 1151 – – inertia 1151 – – ownership rights 1148 – – profitability 1151–1152 – – public goods 1150 – – transaction costs 1148 – legal distinctions 1146–1147 – models of 1153–1155 – – objectives 1153–1154 – – as physicians’ cooperative 1154–1155 – – statics analysis 1154 – ownership conversions 1166–1167 – performance of 1155–1166 – – capital funds and investment 1163–1165 – – cost 1155–1157 – – and for-profit performance 1165–1166 – – pricing patterns 1158–1160 – – profitability 1158 – – quality of care 1161–1163 – – technology, diffusion of 1161 – – uncompensated care 1160–1161 nursing home care, long-term 958, 964, 967 – supply of 965 nursing homes and long-term care 958–959 Nutrition Labeling and Education Act (USA, 1990) 1700 observational comparisons in health insurance 429, 433, 443 obstetrical procedures 1073 Occupational Safety and Health Administration (OSHA) 1013, 1017 Office of Statewide Health Planning and Development (OSHPD, California) 1116, 1129 oligopolistic rivalry in pharmaceutical industry 1301 Omnibus Budget Reconciliation Act (USA) 1605 opportunity cost – in human capital model 366 – of time and moral hazard 416, 444, 446–447 optimal inpatient treatment, and waiting lists 1207 optimal insurance 85, 578, 586–588 – estimates of 587 optimal length of life 366 optimal reimbursement 542–545 optimal stock of health 362 optimal waiting lists 1207, 1231 option demand and waiting lists 1233 Subject Index ordered probits in health econometrics 276 Organization for Economic Cooperation and Development (OECD) – disability policy 1037–1040 – health expenditure in 28 – medical expenditure 171 organizational goals in not-for-profit hospitals 1147 orthodontia, in dental services 1262 outcomes – best, in quality of life 1743–1747 – – criteria for assessing 1743–1744 – – evaluating methods 1745–1747 – – evaluating systems 1744–1745 – and CPI 165–166 – for dental services 1256, 1286–1288 – and health insurance markets 629–631 – in hospital mergers 1420–1426 – measuring 211–217 – – preference assessment 215–216 – – preference heterogeneity 216 – – QALYs 212–214 – – – and CE analysis 217 – – survival and probability of health states 214–215 outreach programs, in child health 1073 over the counter drugs 1300, 1303–1304 overdispersion in health econometrics 318 overhead costs in medical malpractice 1369, 1371, 1380, 1391, 1393 own-price short run elasticities for NHS private care 1230 ownership rights in not-for-profit hospitals 1148 – conversions 1166–1167 panel data in health econometrics 270–272 – individual effects in 309–314 – – conditional logit estimator 310–311 – – linear models 309–310 – – pantob estimator 314 – – parameterizing 311–314 Panel on Cost-Effectiveness in Health and Medicine 183, 207 Panel Study of Income Dynamics (PSID) 667 pantob estimator in health econometrics 314 partial adjustment in health models 389 partial reimbursement 541–542 partially linear model in health econometrics 272 participatory democracy and equity in health 1891 partnerships in general practice 1190–1191 I-73 patents, pharmaceutical 1302, 1307, 1316–1319, 1328 – importance of 1317–1318 – protection 1318 – and Uruguay round agreement 1318–1319 patients – best interest 521–522 – competition for 487–492 – and GP relationship 1178–1180 – – agency and 1098–1101 – and information diffusion 226–227, 229–230 – – property rights of 257–260 – – treatment patterns 244–245, 247–251, 253 Patient’s Charter (UK) 1243 payer-driven competition in health care markets 1126–1131 – effect of 1128–1131 payments – denial of claims in medical malpractice 1389 – flows in health plan markets 764–767 – – different modalities of 766–767 – – premium subsidies 765–766 – – risk-adjusted premium subsidies 764 – – solidarity contributions 765 – in government purchase of health services 866–867, 870–872 – periodic, in malpractice awards 1374 – systems in general practice 1187–1190 – see also capitation payments; copayment; Medicare PPS pediatric hospitalizations 1064, 1066 Peer Review Organizations (PROs) 1121–1122 periodic open enrollment in health plan markets 770 periodic payments in malpractice awards 1374 periodontal programmes in dental services 1290 person-specific pricing in health insurance markets 626–629 person trade-off (PTO) of quality of life measurements 1733, 1903 pharmaceutical industry 1297–1336 – characteristics 1300–1303 – government regulation of drug introductions 1308–1316 – imports 1304 – ‘me-too’ variants 1312 – patents and innovation 1316–1319 – – importance of 1317–1318 – – and Uruguay round agreement 1318–1319 – pricing 1319–1328 – – branded drugs 1320 I-74 – – branded versus generic competition 1322–1324 – – generic drug competition 1321–1322 – – new institutions 1325–1328 – – stimulating generic substitution 1324–1325 – – tort liability risks and 1320–1321 – products in MPPI 150–153 – profits and price controls 1328–1331 – research and development 1305–1308 – structure 1303–1305 pharmacoeconomic cost-effectiveness of health interventions 183 pharmacy benefit management firms (PBMs) 1325–1326 Pharmacy Cost Groups (PCGs) 803 philanthropy, in not-for-profit hospitals 1164 physician agency 461–536 – behaviour with complete information 475–496 – – administered demand and supply prices 481–486 – – competition for patients 487–492 – – efficient production of services 494–495 – – monopolistically competitive firm 475–481 – – network incentives in managed care 492–494 – – noncontractible quality 487–492 – – supply-side cost sharing 487–492 – – third-party payer 481–486 – demand and supply for services 468–475 – – competition among physicians 473–475 – – entry conditions and monopoly profits 469–473 – – income and expenses 470 – – prices and quantities 469 – panel income data 516–519 – – defensive medicine 516–517 – – self-referrals 517 – physician induced demand 503–519 – – demand inducement theory 507–509 – – fees and inducement 513–516 – – income effects 509–513 – – physician-to-population ratios 509–513 – physician objectives 520–526 – – and medical ethics 520–521 – – revenue targeting 525–526 – – target incomes 522–526 – – – income effect 523–525 – – utility and patient’s best interest 521–522 – uncertainty and asymmetric information 496–503 – – irreducible uncertainty 497–498 – – unobservable physician actions 498–502 Subject Index – – unobservable physician characteristics 502–503 physician determined demand in moral hazard 411 physician induced demand 465, 467, 490, 503–519 – in child health 1064, 1065 – demand inducement theory 507–509 – fees and inducement 513–516 physician-owned mutual companies 1363 physician-patient relationship – agency in health care markets 1098–1101 – and delegation of authority 414 – in general practice 1178 Physician Review Organizations (PROs) 1528 physicians – in industrial organization of health care markets – – contracted, and managed care 1125–1134 – – – measuring quality 1133–1134 – – – multinomial choice models 1131–1133 – – – payer-driven competition 1126–1131 – – independent, and hospital cost reimbursement 1111–1117 – – – medical arms race 1114–1117 – – – price competition among 1112–1114 – – – quality competition among 1114–1117 – – physician-patient relationship 1098–1101 – – regulated, and hospital PPS 1117–1124 – – – dynamic cost-shifting 1123–1124 – – – quality choice under 1118–1121 – – – utilization review 1121–1123 – liability in medical malpractice 1364 – – response to 1366 – rationing by in ex post moral hazard 449–451 – – background 449–450 – – empirical evidence 450–451 – services in MPPI 144–148 – utility, in waiting lists 1218 physicians’ cooperatives, not-for-profit hospitals as 1154–1155 Physicians’ Health Study on alcohol consumption 1652 planar thallium radionuclide imaging, cost-effectiveness of 193 Poisson model in health econometrics 317 Poland 14 policy – on disability – – OECD countries 1037–1040 – – toward working-age, USA 1012–1020 Subject Index – – – accident and injury prevention program 1017 – – – health insurance 1019–1020 – – – rehabilitation 1018–1019 – – – return-to-work programs 1018–1019 – – – SSDI program 1013–1015, 1042–1044 – – – SSI program 1015–1016, 1044–1045 – – – vocational training 1018–1019 – – – Workers’ Compensation program 1017, 1045–1047 – in equity in health 1900 – instruments in long-term care 968 – on medical malpractice 1344 – on waiting lists 1231–1243 – – efficient waiting 1239–1243 – – – prioritisation, indices 1240–1242 – – – quasi (internal) markets 1242 – – – reducing uncertainty 1242–1243 – – options, taxonomy of 1232–1239 – – – demand rationing 1233 – – – private provision 1238–1239 – – – subsidies 1235–1238 – – – supply expansion 1234–1235 political coalition and waiting lists 1238 pooling in health insurance 610, 612 poor, health insurance for 430, 442 Portugal – equity in health care delivery – – financing 1821, 1825, 1834 – – private health insurance in 1820, 1826 – – taxes to finance 1827 – health expenditure 14, 850 positron emission tomography (PET), cost-effectiveness of 193–194 poverty reduction, and disability 1028–1030 predictable losses in health plan markets 763 Preferred Provider Organizations (PPOs) 592 – in health care markets 1125–1126, 1131 – in managed care 709, 710, 714 – in mental health 923 – in private health insurance 650 pregnancy and child health programs 1079 Pregnancy Discrimination Act (1979) 712 premiums, health insurance – contributions 760–761 – in health plan markets – – community-rated 765 – – risk rate consumers 777 – – subsidies 761, 765–766 – – – risk-adjusted 764 – and liability for malpractice 1362–1364 I-75 – restrictions 770 – and uncertainty 626–629 prenatal care 1072 prescription drugs, information from in health plan markets 802–803 prescriptions 1300 Preventive Services Task Force (USA) 1685, 1696, 1711 prevention 1675–1720 – costs of and moral hazard 416 – and cure, costs of 1704–1706 – in health economic models 1680–1685 – – human capital models 1680–1683 – – insurance models 1683–1684 – – supply of 1684–1685 – and market failure 1694–1703 – – consumer information, lack of 1696–1701 – – externalities 1694–1696 – – prevention as public good 1701–1703 – meaning and scope 1677–1679 – and medical malpractice 1353 – and moral hazard 1685–1694 – – extent of 1690–1693 – – health insurance status 1691 – – in public sector insurance systems 1693–1694 – – solutions to 1687–1690 – policies to encourage 1706–1712 – – access to clinical services 1707–1709 – – in developing countries 1709–1710 – – information for 1710–1712 – – taxes and subsidies 1706–1707 – research, and health economics 1712–1714 preventive effort in moral hazard 411, 415, 418, 419 preventive services – in child health 1071 – in managed care 712 price controls in pharmaceutical industry 1329 price-cost margin in pharmaceutical industry 1301 price discrimination in pharmaceutical industry 1323 price elasticity of demand – for health care 412, 433–435, 437, 441 – – and moral hazard 580–584 – in health insurance 696–697 price indexes in medical care – forming 133–135 – in national income and product accounts 166–175 I-76 – – issues outside US 171–174 – – medical expenditures in 166–168 – – national health accounts 174–175 – – US context 168–171 – related research 162–163 price regulation and physician agency 464, 467, 481 prices/pricing – competition – – among physicians 1112–1114 – – in not-for-profit hospitals 1161 – in dental services 1268–1270 – – measures 1261–1262 – of health inputs 1058 – in pharmaceutical industry 1319–1328 – – branded drugs 1320 – – branded versus generic competition 1322–1324 – – generic drug competition 1321–1322 – – new institutions 1325–1328 – – stimulating generic substitution 1324–1325 – – tort liability risks and 1320–1321 – of tobacco and smoking 1542 – – impact on demand of 1546–1565 – – – addiction models 1556–1563 – – – – critiques of 1561–1563 – – – – imperfectly rational models 1556–1557 – – – – myopic models 1557–1559 – – – – rational models 1559–1561 – – – behavioural economic analyses of 1563–1564 – – – conventional studies of 1547–1556 – – – – aggregate data 1547–1549 – – – – individual data 1549–1556 – – – econometric studies 1564–1565 – variability of 228–237 – – incomplete information models 230–237 – – – general model 230–236 – – – – application 234 – – – – insurance and costs of search 235–236 – – – – price variability 236 – – – – search with unknown quality 234–235 – – – Herd and cascade models 237 – – search and 228–230 primary care beds, UK 1192 primary prevention 1677 principal-agent problems in insurance 588–590 prior year expenditures models in health plan markets 797–798 prioritisation, indices for in waiting lists 1240 Subject Index private contracting in medical malpractice 1381–1382 private donations to not-for-profit hospitals 1147, 1164 private health insurance – and demand for long-term care 978–981 – in long-term care 957–958, 978–981 – markets for in mental health 907–925 – – and capitation 921–925 – – hospital payment systems 920–921 – – and rationing 912–918 – – supply-side incentives 918–925 – policies, features 650 private practice and waiting lists 1220 probability in human capital models 393 probit model in health econometrics 275 process innovation in health care 453 producer sovereignty in medical care 1204 product differentiation – and antitrust in health care industry 1411 – in pharmaceutical industry 1302–1303, 1328 product innovation in health care 452 product safety in public health programs in child health 1080–1081 production – in human capital model 372 – of information 225, 257–261 – – costs of 258–261 – – property rights 257–258 production function – in child health 1057 – disagreement on best practice 237–256 – – healer’s dilemma 237–239 – – physician-specific variations 248–251 – – regional variations 239–248 – – – and individual variations 251–252 – in human capital model 367, 381 – in not-for-profit hospitals 1154 production possibility frontier and equity in health 1867 productive efficiency in insurance reimbursement 553–554 productivity – alcohol, impact on 1653–1658 – – direct effects 1654–1657 – – and human capital 1657–1658 – in dental services 1275, 1280–1282 – loss in waiting lists 1223 profitability – in not-for-profit hospitals 1151–1152 – in pharmaceutical industry 1307, 1328 Subject Index Program of All-inclusive Care for the Elderly (PACE) 961–962 property rights – to drugs, devices and ideas 257–258 – and equity in health 1890 – in not-for-profit hospitals 1148 proportional hazards model in health econometrics 326 proprietary drugs 1300, 1303–1304 prospective payment in government purchasing of health services 862–866 – costs 863–865 – quality 865–866 provider in quasi markets 1242 provider market power in insurance reimbursement 551–553 provider-owned insurers 1363 pseudo-maximum likelihood (PML) estimators in health econometrics 271 psychiatric hospitals 1163 public assistance and health insurance 681–687 – research on 683 public goods – in health sector 71 – not-for-profit hospitals as 1150 public health interventions in infectious diseases 1777–1787 – dynamic welfare effects 1784–1785 – information, allocation of 1785–1787 – mandatory vaccination 1780–1781 – Pareto-optimal timing of 1781–1784 – subsidies 1777–1780 – welfare loss 1787–1789 public health service and care – child health, programs in 1078–1083 – – community-based 1082 – – education and information campaigns 1078–1080 – – home visiting 1081–1082 – – incentives 1082 – – product safety 1080–1081 – and disability 1031–1032 – on infectious diseases 1763–1764, 1767, 1785 – means-tested, in child health 1072, 1076–1077 – mental health – – externalities and 941–943 – – fiscal federalism and 938–941 – and moral hazard 413 – prevention, experts on 1677 – and smoking 1543 – – counter-advertising 1594 I-77 – – taxation on 1574–1579 – – – increasing, health benefits of 1577–1579 – – – social costs 1575–1577 public hospital organizations 1147 public mental health system 936–943 – externalities 941–943 – fiscal federalism 938–941 – technology for 937–938 purchaser in quasi markets 1242 purchasing power parity in health expenditure 21, 22–23, 24 pure consumption model of health demand 374–377, 394 Pure Food and Drug Act (USA, 1906) 1309 pure health inequalities 1847–1849 – empirical work on 1848–1849 – measurement of 1847–1848 – socioeconomic 1849 pure investment model of health demand 367–374, 377, 385 – depreciation rate effects 369–371 – market and nonmarket efficiency 371–374 pure price effects and moral hazard in health care 426–429, 441 qualitative dependent variables in health econometrics 275–284 – binary responses 275–276 – bivariate models 283–284 – multinomial and ordered responses 276–283 – – and grouped data regression 276–278 – – multinomial logit 278–280 – – multinomial probit model 282–283 – – nested multinomial logit 280–282 quality-adjusted life years (QALYs) – and cost-effectiveness of health interventions 185, 189–191, 194 – – and decision making 197, 200–201 – – measurement of 204, 206, 212, 217 – – survival, estimating 214–216 – costs of coronary heart disease 193, 195 – and equity in health 1865, 1867, 1871, 1904 – and general practice 1184 – in measuring health outcomes 97, 101–102, 105–106, 212–214 – – and cost effectiveness analysis 217 – and mental health 917 – model in quality of life measurements 1726, 1729, 1749 – – additive separability 1743 – – assumptions 1740–1743 – – constant proportional trade-off 1741 I-78 – – lifetime preferences, stability 1742–1743 – – risk attitude over life years 1741–1742 – – utility dependence 1740–1741 – – zero rate of time preference 1742 – and prevention 1705 – and waiting lists 1209 – – maximize total predicted 1241 quality models of long-term care 968–972 – measuring 1133–1134 quality of care – in child health 1061 – in long-term care 968–972 – in not-for-profit hospitals 1161–1163 quality of life measurements 1723–1760 – best outcome measures 1743–1747 – – criteria for assessing 1743–1744 – – evaluating methods 1745–1747 – – evaluating systems 1744–1745 – economic validity of 1751–1752 – generation of values for health states 1748 – – aggregation of 1748–1749 – harmonization 1752 – health – – aggregation of values 1750 – – calculation of values 1750 – – description of 1749 – – source of values 1750 – – valuation of 1750 – health or health gain 1751 – measuring health outcomes 1725–1726 – – requirements 1727–1729 – profiles or states 1751 – QALY model 1749 – – assumptions 1740–1743 – – – additive separability 1743 – – – constant proportional trade-off 1741 – – – lifetime preferences, stability 1742–1743 – – – risk attitude over life years 1741–1742 – – – utility dependence 1740–1741 – – – zero rate of time preference 1742 – and respondent characteristics 1747–1748 – and socioeconomic inequalities in health 1854 – time preferences 1751 – using different values 1752 – valuations, eliciting 1752–1754 – values considered 1729–1731 – – aggregation 1740 – – description of 1731–1732 – – how generated 1739–1740 – – how valued 1732–1737 – – who values 1738–1739 Subject Index quality of service in government purchase of health services 853–857 – and effort 855–857 – in fixed price contracts 859–860 – framework for 853–855 – prospective payment 862–866 Quality of Well-Being Scale (QWB) 1745 quantile regression in health econometrics 271 quantity setting by physicians 467, 469, 474, 477, 481, 484, 486, 490, 496, 501 – objectives 523, 527 – and physician-induced demand 516–519 quasi markets and waiting lists 1242 queuing model of waiting lists 1210, 1243 race – and child health 1075, 1083 – and disability 1003, 1004, 1005 – in long-term care 976 RAND Health Insurance Experiment (HIE) 161–162, 286 – on alcohol consumption 1650, 1655 – and child health 1059, 1064 – in dental services 1264, 1271, 1273 – and health outcomes 629 – and managed care 723–724, 728, 732 – and medical care demand 584, 588 – in mental health 910–911, 926 – and prevention 1708 – and smoking 1579 random effects in health econometrics 308 randomized trials on moral hazard 418, 429, 437 ratchet effect in government purchase of health services 877–878 rate of return regulation in pharmaceutical industry 1329, 1330 rate regulation in hospitals 1495–1497 rate-setting programs in hospitals 1503, 1509–1510, 1524–1526 rational drug design 1307 rational models of cigarette demand 1559–1561 – critiques of 1561–1563 rationing – of health services 444, 449, 454 – in mental health 912–918 – by physician 449–451 rebate for no claims in health insurance 434 reduced form equations in human capital model 379, 384 referrals in general practice 1185–1187 regulation – of alcohol consumption 1658 Subject Index – in health plan markets 769–771 – mechanisms in medical malpractice 1350 – in not-for-profit hospitals 1154 – of prices in pharmaceutical industry 1329 rehabilitation – and disability economics 1030–1031 – working-age population, USA 1018–1019 reimbursement in insurance 537–560 – alternatives to 548–551 – and balance billing 547–548 – bidding models 557–558 – complements 548 – empirical results on 556–557 – heterogeneity in non-competitive markets 554–556 – indemnity and health insurance benefits 541–542 – in insurance theory 539–540 – medical services, nature of 540 – monopsony in 551–553 – and moral hazard 542–545 – optimal 542–545 – partial 541–542 – and productive efficiency 553–554 – provider market power in 551–553 – and service benefit insurance 545–547 – substitutes 548 rental price of health capital 356 reputations in government purchase of health services 878–883 – for characteristics 879 – for past behaviour 880–883 research and development – on infectious diseases 1787–1789 – in pharmaceutical industry 1302, 1307–1308 – on prevention 1702, 1703 reservation wage in long-term care 973 reserve margins in hospital regulation 1523–1524 residual claimants in not-for-profit hospitals 1152 restorative treatments in dental services 1290–1291 restricted-activity days in human capital model 381 restrictions in health plan markets 770 retail pharmacies 1304 retail price, effect of taxation on smoking 1567–1569 retirement and health insurance 674–681 – health risks, by age 675 I-79 – research on 677–678 retransformation problem in health econometrics 290 return-to-work and disability 1018–1019, 1030–1031 revealed preference in waiting lists 1222 revenue targeting and physician agency 525–526 risk-adjusted premium subsidies in health plan markets 764 risk adjustment – in health insurance 624–625 – in health plan markets see health plan markets – in managed care 744 – in mental health 897, 932–935 risk-aversion – in human capital models 393, 394 – and moral hazard 417 risk hedging in pharmaceutical industry 1305 risk selection in health care as economic commodity 82–83 risk sharing in health plan markets 763, 777, 817–828 – condition-specific 822 – empirical results 823–826 – forms 819–823 – – all members 819–820 – – condition-specific 822–823 – – high-risks 820–822 – optimal forms 826–827 – outlier 819 – proportional or prior costs 819, 827–828 risks – of alcohol consumption 1647 – and quality of life measurements 1741–1742 roll-back in pharmaceutical industry 1331 Roy’s identity in health insurance 427 rule of rescue and equity in health 1894, 1899 Russia 830 Saskatchewan Study on health insurance 430 safety in pharmaceutical industry 1308 sample selection model in health econometrics 272 San Francisco Home Health Study (SFHHS) 1786 San Francisco Men’s Health Study (SFMHS) 1771–1772, 1774–1775 sanitation, as public good 71 savings and demand for long-term care 981–982 Say’s law of hospital beds 1221 schooling – and alcohol consumption 1657–1658 I-80 – in human capital model of health demand 394–404 – – formal 373, 379, 389, 395–397, 399, 400, 402 – – – coefficients 382, 387 – and prevention 1681–1682 – see also education Scotland: dental services in 1281 sealant programmes in dental services 1289–1290 search – costly, in health care markets 1095–1096 – and information diffusion in health care 225, 227 – – incomplete, model of 230–236 – – – applications 234 – – – and insurance 235–236 – – – with unknown product quality 234–235 – – and market equilibrium 228–230 – in managed care 725–726, 728–731 secondary prevention 1677 selection – and competition in health insurance markets 624 – health plan markets, risk adjustment in 771–774 – – cream skimming 773–774 – – effects of 774–776 – – preventing 776–779 – and job-job mobility 665–666 – in markets for health insurance 624 – model and moral hazard 447 – of provider in managed care 713–714, 728–731 – – studies of 729–730 – of risk in health care 82–83 selective contracting in managed care 719, 727 self-employment and health insurance 672 self-enforcing agreements in government purchase of health services 881 self-referrals to physicians 517 self-reported information models in health plan markets 803–804 semi parametric estimators in health econometrics 270, 272–274 sensitivity analysis in cost-effectiveness of health interventions 196–197, 204 separating in health insurance 610–612 service benefit insurance 545–547 settlement process in medical malpractice 1357 Subject Index sexually transmitted diseases (STDs) 1707, 1773, 1790 Sherman Act (USA, 1890) 1408, 1419 sick leave – in human capital model 387 – pay, in moral hazard 411, 416, 418, 421, 422, 445 sick time in human capital model 353 simulation estimators in health econometrics 305 simultaneous equations in health econometrics 299 simultaneous model profit demand and supply in waiting lists 1229 single photon emission computed tomography 193, 194 skew distribution in new drug development 1316 smearing estimator in health econometrics 290 smoking 1539–1627 – advertising and promotion 1584–1593 – – econometric evidence 1585–1591 – – noneconomic literature, findings from 1591–1593 – – theory 1585 – agricultural policy and macroeconomic implications 1598–1610 – – contribution of to economy 1606–1610 – – – farming communities 1609–1610 – – – states and nations 1606–1610 – – tobacco industry, size and nature 1598–1601 – – – globally 1598 – – – in USA 1598–1601 – – tobacco regulatory system, USA 1601–1605 – – – nature of system 1601–1603 – – – relevance of to smoking and health 1603–1605 – and child health 1078–1079 – control policies and demand 1593–1598 – – health information and counter-advertising 1593–1596 – – smoking restrictions 1596–1597 – – youth access to, limits 1597–1598 – in human capital model 399-400, 403 – management implications of consumption 1544–1546 – price of, impact on demand 1546–1565 – – addiction models 1556–1563 – – – critiques of 1561–1563 – – – imperfectly rational models 1556–1557 – – – myopic models 1557–1559 – – – rational models 1559–1561 Subject Index – – behavioural economic analyses of 1563–1564 – – conventional studies of 1547–1556 – – – aggregate data 1547–1549 – – – individual data 1549–1556 – – econometric studies 1564–1565 – restrictions 1552 – taxation 1543, 1565–1584 – – comparisons 1566–1571 – – – country variations 1569–1571 – – – effects on retail price 1567–1569 – – – purposes and methods 1566–1567 – – – smuggling 1569–1571 – – and environmental tobacco smoke (ETS) 1580–1582, 1596 – – fairness standards 1571–1574 – – – benefit principle 1574 – – – horizontal and vertical equity 1572–1574 – – optimal, and economic efficiency 1579–1584 – – – negative externalities 1579–1583 – – – other considerations 1583–1584 – – public health standards 1574–1579 – – – increasing taxes, health benefits of 1577–1579 – – – social costs 1575–1577 smuggling, and taxation on smoking 1569–1571 social consequences of alcohol consumption 1645–1653 – cirrhosis 1649–1650 – crime and suicide 1652–1653 – intertemporal 1634 – medical care 1650–1651 – motor-vehicle mortality 1646–1649 – – studies of 1648 social contract theory 1892 social costs – of alcohol consumption 1664–1665 – of smoking 1574, 1575–1577 social influences on alcohol consumption 1643–1644 social insurance in health care delivery 1826 social justice in health care delivery 1807, 1808–1809 Social Security Act (USA, 1972) 1494 Social Security Disability Income (SSDI) program, USA 1012–1015, 1042–1044 Social Security tax, for health insurance 569 social welfare function (SWF) – in health sector 93 – in quality of life measurements 1728 socioeconomic inequalities in health 1849–1855 I-81 solidary contributions in health plan markets 760–761, 765 sophisticated block contracts in NHS 866 South Africa 1608 Spain – dental services, inputs and outcomes 1256 – equity in health care delivery – – financing 1821, 1825 – – private health insurance in 1820, 1826 – – utilization, indices 1844 – health expenditure 14, 850 – long-term care for elderly 963 – payment systems in general practice 1188 – tobacco advertising, banned 1589 spend-down behaviour in long-term care 981–982 sponsors, role of in health plan markets 760, 761–762 Stackelberg equilibria in waiting lists 1217 standard gamble (SG) of quality of life measurements 1733–1735, 1737, 1745–1747 standard merger case in health care markets 1448 standard of care – bias in 1347–1349 – and medical malpractice 1353, 1376, 1383 Stanford University Study on health insurance 430 stated preference in waiting lists 1222 static moral hazard 413, 420, 429, 451, 454 statutes of limitations in medical malpractice 1355, 1363 steroids 1300 stochastic frontiers in health econometrics 331–335 – cost function studies 331–332 – frontier models 332–335 stock/flow inventory approach to waiting lists 1210 stock of health in human capital model 358, 361–364, 377, 378 stop loss in health insurance 437, 584, 585 streptomycin 1306 stress echocardiography, cost-effectiveness of 193, 194 strict liability in medical malpractice 1378 stroke, quality of care 1162 structural equations in human capital model 378 subsidies – formula in health plan markets 767–769 I-82 – in not-for-profit hospitals 1148 – – explicit 1151 – – implicit 1151 – prevention, policies to encourage 1706–1707 – in public health interventions in infectious diseases 1777–1780, 1782–1784 – in waiting lists and medical treatment 1235–1238 substance abuse 899–900 – alcohol 1654 – in child health programs 1078 – treatment system 936–943 – see also mental health substantive equality of opportunity in health care 1878–1879 substitutes in insurance reimbursement 548 substitution effect – in moral hazard 417 – in spending on medical care 577 substitution in human capital model 372, 374 Sudden Infant Death Syndrome (SIDS) 1078 suicide and alcohol consumption 1652–1653 sulfanilamide 1306 sum-ranking and equity in health 1872 Supplementary Security Income (SSI) program, USA – and disability 1015–1016, 1034, 1044–1045 – and health insurance 681, 685–686 – for long-term care 976 supplier-induced demand – in dental services 1259–1260, 1263, 1272–1273 – in insurance 589 – in waiting lists 1228, 1230, 1236 supply assurance in government purchase of health services 874–875 supply side cost sharing 856 Survey of Income and Program Participation (SIPP) – on disability 1001 – in health insurance 670, 672, 676, 679, 694 survival analysis in health econometrics 325–326 Sweden – dental services – – inputs and outcomes 1256 – – markets for 1255 – – productivity 1281–1282 – direct provision of services in child health programs 1077 – and disability Subject Index – – policy 1038 – – transfer recipients 1003 – equity in health care delivery – – financing 1821, 1825, 1834 – – taxes to finance 1824 – – utilization, indices 1846 – health expenditure 14, 850 – international drug sales 1313 – long-term care for elderly 963 – medical expenditure 172 – medical malpractice in 1344 – – collateral source effect 1374 – – liability for 1389–1392 – – no-fault programs 1379–1380 – vocational rehabilitation programs 1019 – waiting lists – – contingent valuation of 1227 – – incentives to reduce 1235 Swedish Patient Compensation Insurance (PCI) 1389–1392 switching regression model in health econometrics 303–304 Switzerland – dental services, inputs and outcomes 1256 – equity in health care delivery – – financing 1821, 1825, 1834 – – private health insurance in 1820 – – taxes to finance 1827 – – utilization, indices 1844, 1846 – health expenditure 13–14, 850 – international drug sales 1313 – not-for-profit hospitals in 1145 – risk adjustment and sharing in 830 synthetic wards, and waiting lists 1229 systematic review in health econometrics 331 Taiwan Studies on health insurance 433 target incomes – and physician agency 522–526 – by physicians 465, 468, 481, 485–486, 496, 520, 522–526 Tax Equity and Responsibility Act (USA, 1982) 1513 tax-exempt bond financing in not-for-profit hospitals 1147 tax-financed health care 453 taxation – of alcohol 1658–1665 – – background to 1658–1659 – – economic efficiency 1662–1663 – – equity criteria 1659–1662 – – – horizontal, and user fees 1660–1662 Subject Index – – – incidence 1659–1660 – – total social cost 1664–1665 – and equity in health care delivery 1820, 1824 – and not-for-profit hospitals 1156, 1163–1164 – prevention, policies to encourage 1706–1707 – of smoking 1543, 1565–1584 – – comparisons 1566–1571 – – – country variations 1569–1571 – – – effects on retail price 1567–1569 – – – purposes and methods 1566–1567 – – – smuggling 1569–1571 – – fairness standards 1571–1574 – – – benefit principle 1574 – – – horizontal and vertical equity 1572–1574 – – optimal, and economic efficiency 1579–1584 – – – negative externalities 1579–1583 – – – other considerations 1583–1584 – – public health standards 1574–1579 – – – increasing taxes, health benefits of 1577–1579 – – – social costs 1575–1577 teaching hospitals 1152, 1157, 1218 technical efficiency in dental services 1275, 1283 technology – administrative, in managed care 726 – change, in medicine 451 – – and medical care marketplace 127 – diffusion, in not-for-profit hospitals 1161 – in treatment in mental health 937–938 Temporary Assistance for Needy Families 681 tertiary prevention 1677 thalidomide 1309 therapeutic gains in new drug development 1320 third variables in human capital model 396–397 time costs – in dental services 1270–1271 – and moral hazard in health care 411, 447, 453 time inputs – in human capital model 384 – in waiting lists 1222 time preference in human capital model 374, 397–399, 401–405 time prices in dental services 1262–1263 time trade-off (TTO) of quality of life measurements 1733–1737, 1742, 1745–1747, 1854 tobacco industry – agriculture, USA 1544, 1601–1605 – regulatory program, USA – – nature of system 1601–1603 I-83 – – relevance of to smoking and health 1603–1605 – size and nature 1598–1601 – – globally 1598 – – in USA 1598–1601 – see also cigarettes tort liability 1345–1351 – economic models of 1364–1365 – with imperfect information 1347–1350, 1399 – – custom-based standard of care, bias in 1347–1349 – – uncertain standards 1349–1350 – other control mechanisms 1350–1351 – with perfect information 1345–1347 – reform 1355, 1371 – – awards, structure of – – – collateral source effect 1374 – – – limits 1371–1372 – – – periodic payments 1374 – – enterprise liability 1377–1378 – – litigation costs, reducing – – – alternative dispute resolution 1376 – – – contingent fees, limits 1375–1376 – – quality and standards of care 1376–1377 – – – awards, structure of 1371–1374 – – – litigation costs, reducing 1374–1376 – risks and prices, pharmaceutical industry 1320–1321 total cost of queuing in waiting lists 1211 total time lost in waiting lists 1211 toxicity risks of drugs 1300 tracking systems in child health programs 1077 training and disability 1030–1031 – vocational (USA) 1018–1019 transaction costs – in general practice 1179 – and moral hazard 590 – in not-for-profit hospitals 1144, 1146, 1148, 1152 transfer recipients, disabled as 1026, 1027, 1028 transitory surge in demand for health insurance 439 travel time in human capital model 372, 390 trust and not-for-profit hospitals 1144 trusts for long-term care 981 Turkey – counter-advertising of smoking 1595 – health expenditure per capita 14 two-episode model of health insurance 423, 450 two-part model in health econometrics 285 two-part model of demand 434 I-84 uncertainty – and antitrust in health care markets 1413 – in government purchase of health services 861–862 – health care as economic commodity 79–87 – – economies of scale 81–82 – – insurance, welfare improving effects 80–81 – – moral hazard 83–87 – – risk selection 82–83 – in human capital models 393, 394 – in new drug development 1315 – and physician agency 496–503 – – irreducible uncertainty 497–498 – – unobservable physician actions 498–502 – – unobservable physician characteristics 502–503 – premium, in health insurance markets 626–629 – reducing, and waiting lists 1242–1243 – of standards, in medical malpractice 1349 uncompensated care – in child health 1066 – and health insurance 570 – in not-for-profit hospitals 1160–1161 under-provision of waiting lists 1234 uniform distribution of waiting values 1227 United Kingdom – administered waiting in 1222 – birth rates, teenage 1079 – class, and child health 1075 – dental services – – inputs and outcomes 1256 – – markets for 1255 – and disability – – policy 1038 – – transfer recipients 1003 – equity in health care delivery – – financing 1821, 1825, 1834 – – private health insurance in 1820, 1826 – – taxes to finance 1824 – – utilization, indices 1844, 1846 – general practice in – – fundholding 1187 – – payment systems 1188 – – referrals in 1186 – health expenditure 14, 850 – health plans in 833 – internal markets in health sector 77 – international drug sales 1313 – long-term care for elderly 963 – medical expenditure 171 – medical malpractice in 1344, 1357 Subject Index – – collateral source effect 1374 – – contingent fees 1375 – – liability for 1386–1389 – – negligence claims for 1387 – mental health, expenditure on 898 – not-for-profit hospitals in 1145 – outpatient drug reimbursement 1330 – population projections of elderly 983 – primary care beds in 1192 – QALYs in measuring health outcomes 101 – risk adjustment and sharing in 830 – smoking – – advertising – – – banned 1589 – – – and consumption 1587 – – counter-advertising of 1595 – – economic contribution of industry 1608 – – social costs of 1575 – vocational rehabilitation programs 1019 – waiting lists in 1205–1207 – – incentives to reduce 1235 United Mine Workers Study on health insurance 431 United States – dental services – – inputs and outcomes 1256 – – markets for 1255 – and disability – – policy 1038 – – transfer recipients 1003 – disability policy toward working-age persons 1012–1020 – – accident and injury prevention program 1017 – – health insurance 1019–1020 – – rehabilitation 1018–1019 – – return-to-work programs 1018–1019 – – SSDI program 1013–1015, 1042–1044 – – SSI program 1015–1016, 1044–1045 – – vocational training 1018–1019 – – Workers’ Compensation program 1017, 1045–1047 – equity in health care delivery – – financing 1821, 1825, 1834 – – private health insurance in 1820 – – utilization, indices 1844, 1846 – health expenditure – – on mental health 898, 902 – – per capita 13–14 – – in public sector 850 – – on speciality care organizations 903 – international drug sales 1313 Subject Index – long-term care for elderly 963 – medical care marketplace, features 124–129 – new drug approvals 1311 – not-for-profit hospitals in 1145 – payment systems in general practice 1189 – population projections of elderly 983 – QALYs in measuring health outcomes 101 – risk adjustment and sharing in 831 – smoking, economics of – – advertising, and consumption 1587, 1588 – – tobacco industry, size and nature 1598–1601 – – tobacco regulatory system 1601–1605 – – – nature of system 1601–1603 – – – relevance of to smoking and health 1603–1605 unmeasured determinants in human capital models 391 unpaid caregivers in long-term care 957 unverifiable quality of health services 851 user cost of health capital 356 utiliarianism and equity in health 1872–1873 utility possibility frontier and equity in health 1867 utilization of services and care 1833–1846 – in child health 1070, 1071–1073, 1075, 1083 – in dental services 1273 – in general practice 1180–1184 – – GP, choice of 1183 – – practice, choice of 1181 – – seeking medical care 1182–1183 – – treatment, choice of 1183–1184 – and hospital regulation 1516 – inequality, measuring 1841–1846 – – direct standardization-based index 1842–1844 – – indirect standardization-based index 1844–1846 – inequality tests in 1835–1841 – in managed care 731–739 – – monitoring 716–717 utilization review – in health care markets 1121–1123 – in managed care 709, 717, 727 Vaccines for Children Program 1702 vaccines/vaccination – in infectious diseases 1794–1795 – – mandatory 1780–1781 – and pharmaceutical industry 1299 – and prevention 1694–1696, 1702–1703, 1709 variations in information diffusion I-85 – in medical practice 241 – physician-specific 248–251 – regional 239–248 – – and individual variations 251–252 – welfare loss from 254 verdict in medical malpractice 1358 vertical equity in health care delivery 1819, 1822–1828 – empirical work on 1824–1828 – Kakwani’s progressivity index 1822–1824 vertical integration in general practice 1191–1193 Viagra 1324 violence – and alcohol consumption 1646, 1652 – in child health programs 1078, 1079 violent death 1646 visual analogue scale (VAS) of quality of life measurements 1733–1734, 1747, 1854 Vocational Rehabilitation program (USA) 1013 vocational training and disability, USA 1018–1019 von Neumann–Morgenstern utility in health interventions 199 voucher model of premium contributions 766 wage coefficient in human capital model 384 wage effects in human capital model 387 wage elasticity of medical care 372, 375, 380 wage rate in human capital model 371–372, 382 wages – of disabled 1008–1009, 1011 – and health insurance 690–695 – – and hours worked 695–696 – – – research on 691–692 – – time series patterns 689–690 – in not-for-profit hospitals 1157 waiting lists 1201–1249 – empirical matters 1221–1231 – – costs of administered waiting 1222–1228 – – – contingent valuation methods 1225–1228 – – – market data on 1222–1225 – – costs of physical waiting 1221–1222 – – inter-sectoral effects 1230–1231 – – supply variables, impact of 1228–1230 – existing, managing 1239 – policy issues 1231–1243 – – efficient waiting 1239–1243 – – – prioritisation, indices 1240–1242 – – – quasi (internal) markets 1242 – – – reducing uncertainty 1242–1243 – – options, taxonomy of 1232–1239 I-86 – – – demand rationing 1233 – – – private provision 1238–1239 – – – subsidies 1235–1238 – – – supply expansion 1234–1235 – theoretical issues 1205–1221 – – demand and consumer surplus dissipation 1212–1214 – – demand side 1214–1215 – – supply side 1215–1221 – – – fostering private practice 1220 – – – least cost supply 1221 – – – managing 1218–1220 waiting time in human capital model 372, 390 Waxman–Hatch Act (USA, 1984) 1321–1322 wealth – in human capital model 375 – and long-term care 977 wealth elasticity of medical care 380 Weibull model in health econometrics 327 welfare – gains from health insurance 575 – and health insurance 673–674 – and information diffusion – – losses from 252–256 – – and medical care variations 254 – reform, in child health 1061 welfare economics – and equity in health 1874 – of health care – – cost-effectiveness of 183–185, 203, 211–212, 219 – – – decision making in 188, 198 – – uncertainty – – – economies of scale 81–82 – – – improving effects 80–81 – – – moral hazard 83–87 – – – risk selection 82–83 – of health sector, efficiency in – – and extra-welfareism 62–66 Subject Index – – neo-classical framework 60–62 welfare lock in AFDC program 682 welfarism and equity in health 1872 well care 420 wholesalers in pharmaceutical industry 1304 willingness-to-pay (WTP) – in dental services 1288 – and quality of life 1734 women – costs of alternative strategies for coronary heart disease 193 – and disability – – employment patterns 1006, 1008 – – status of 1004, 1005 – health spending on 795–796 – long-term care for 960 – and SSDI beneficiaries 1014 – and SSI beneficiaries 1016 work-loss days in human capital model 381, 388 work-related training and education services for disability 1019 Workers’ Compensation program, USA 1017, 1045–1047 – and disability 1012–1013 – and medical malpractice 1356, 1378–1379 World Health Organization 1546, 1597, 1711 – on infectious diseases 1766, 1789 X-efficiency in waiting lists 1231 youth – alcohol, demand for 1641–1642 – – social influences on 1643–1644 – cigarette demand 1552 – smoking, access to, limited 1597–1598 zero inflated Poisson model in health econometrics 319 Zimbabwe: tobacco industry 1599, 1608 ...HANDBOOK OF HEALTH ECONOMICS VOLUME 1A This Page Intentionally Left Blank HANDBOOK OF HEALTH ECONOMICS VOLUME 1A Edited by ANTHONY J CULYER University of York and JOSEPH P NEWHOUSE... Contents of the Handbook vii Acknowledgments xi Introduction: The State and Scope of Health Economics ANTHONY J CULYER and JOSEPH P NEWHOUSE The health of health economics The scope of health economics. .. THE STATE AND SCOPE OF HEALTH ECONOMICS ANTHONY J CULYER and JOSEPH P NEWHOUSE The health of health economics Health economics is commonly regarded as an applied field of economics “It draws