Flat-of-the-curve medicine: A new perspective on the production of health
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In: Health Economics Review, Vol. 1, No. 1, 2, 01.01.2011, p. 1-10.
Research output: Journal contributions › Journal articles › Research › peer-review
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TY - JOUR
T1 - Flat-of-the-curve medicine
T2 - A new perspective on the production of health
AU - Schoder, Johannes
AU - Zweifel, Peter
PY - 2011/1/1
Y1 - 2011/1/1
N2 - Health economists have studied the determinants of the expected value of health status as a function of medical and non-medical inputs, often finding small marginal effects of the former. However, medical inputs may have an additional benefit in the form of a reduced variability of health status. Using the standard deviation of life expectancy in 24 OECD countries between 1960 and 2005, a 10 percent increase of health care expenditure is associated with a decrease of an estimated 0.42 percent. Willingness to pay for such a reduction of uncertainty may well exceed the extra health care expenditure in the United States and Switzerland. This implies that even in these two countries with very high health care expenditure per capita, flat-of-the-curve medicine need not be wasteful.
AB - Health economists have studied the determinants of the expected value of health status as a function of medical and non-medical inputs, often finding small marginal effects of the former. However, medical inputs may have an additional benefit in the form of a reduced variability of health status. Using the standard deviation of life expectancy in 24 OECD countries between 1960 and 2005, a 10 percent increase of health care expenditure is associated with a decrease of an estimated 0.42 percent. Willingness to pay for such a reduction of uncertainty may well exceed the extra health care expenditure in the United States and Switzerland. This implies that even in these two countries with very high health care expenditure per capita, flat-of-the-curve medicine need not be wasteful.
KW - Management studies
KW - Control over health status
KW - Production of health
KW - Willingness to pay
UR - http://www.scopus.com/inward/record.url?scp=84971216438&partnerID=8YFLogxK
UR - https://www.mendeley.com/catalogue/f289eb91-d429-3f24-8617-5073dda09c9f/
U2 - 10.1186/2191-1991-1-2
DO - 10.1186/2191-1991-1-2
M3 - Journal articles
C2 - 22828160
VL - 1
SP - 1
EP - 10
JO - Health Economics Review
JF - Health Economics Review
SN - 2191-1991
IS - 1
M1 - 2
ER -