Garber & Skinner 2008

Garber& - Garber Skinner(2008 Is the US health care system productively inefficient o Compared to other countries do we get less health for

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Is the US health care system productively inefficient? o Compared to other countries, do we get less health for a given bundle of inputs (physicians, nurses, hospital beds)? o Saw from Wolfe (1986) that cross-country comparisons of expenditures and health outcomes are confounded by differences across countries in underlying health and lifestyle Is the US health care system allocatively efficient? o Do health benefits from marginal dollar spent on health care exceed the opportunity cost of other goods that might be provided? o Every country will have some allocative inefficiency but are we worse than other countries? A, E, C, B are productively efficient – whether they are allocatively efficient depends on whether at the margin, the same expenditure on non-medical goods would lead to greater welfare gains We may observe, for example, that UK spends less but has better outcomes than US o US could be at “flat of the curve” (point B), while UK is at point E – productively
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This note was uploaded on 02/08/2012 for the course ECON 388 taught by Professor Chaka during the Spring '11 term at SUNY Albany.

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Garber& - Garber Skinner(2008 Is the US health care system productively inefficient o Compared to other countries do we get less health for

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