HE+HW4+-+Spring+2010 - Department of Economics Health...

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Department of Economics Prof. Derek DeLia Health Economics 220:316:01 Spring 2010 HOMEWORK #4 This assignment is for practice purposes only. It will not be graded or collected. 1.) The following questions refer to the Rand Health Insurance Experiment (HIE). a. Briefly describe the basic design of the HIE. b. To what extent was adverse selection a problem in the study design? (Hint: Think about this carefully.) c. What kinds of health services had the greatest price elasticity and why? d. How did healthcare utilization affect health in the general population? e. What were the health impacts among low-income populations? 2.) Consider each of the following groups of services covered by insurance. For which service is moral hazard more likely to occur? Group Covered service Covered service 1 Amputation of an arm or leg Physical therapy visits 2 Medication for seasonal allergies Open heart surgery 3 Emergency department visits for any reason Emergency department visits that result in admission to
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This note was uploaded on 05/05/2010 for the course ECON 316 taught by Professor Delia during the Spring '10 term at Rutgers.

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HE+HW4+-+Spring+2010 - Department of Economics Health...

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