CHAPTER5The Economicsof Health CareChapterOutlineandLearningObjectives5.1The Improving Health ofPeople intheUnited States5.2Health Care around theWorld5.3InformationProblemsandExternalitiesintheMarketforHealth Care5.4TheDebate over Health CarePolicy in the United States
1 Chapter Outline and Learning Objectives 5.1 The Improving Health of People in the United States 5.2 Health Care around the World 5.3 Information Problems and Externalities in the Market for Health Care 5.4 The Debate over Health Care Policy in the United States CHAPTER 5 CHAPTER The Economics of Health Care
HealthCareintheUnited StatesHealth care expenditure in the United States is higher than anywhereelse in the world.Whyis this the case? ldeas:.High quality of health care. System of payment for health care: Higher demand for health careInthischapter,wewill addresssomeoftheelementsofhealthcarethat make it a rich field of study for economists.@2015PearsonEducation,Inc
© 2015 Pearson Education, Inc. 2 Health Care in the United States Health care expenditure in the United States is higher than anywhere else in the world. Why is this the case? Ideas: • High quality of health care • System of payment for health care • Higher demand for health care In this chapter, we will address some of the elements of health care that make it a rich field of study for economists
ThelmprovingHealthofPeopleintheUnitedStates5.1LEARNINGOBJECTIVEDiscusstrendsinU.S.healthovertime@2015PearsonEducation,lnc
LEARNING OBJECTIVE © 2015 Pearson Education, Inc. 3 The Improving Health of People in the United States 5.1 Discuss trends in U.S. health over time
HealthOutcomes in the United StatesThelast coupleof centurieshave brought incredible18502013VariableadvancesinhealthoutcomesLife expectancy38.3 years78.7yearsfor Americans.at birth5'7"5'9"Average heightExplanations:(adult males)Improvements in nutritionInfant mortality228.9per1,0005.9per1.000.Public health movement (late(death of a childlive birthslivebirths1gth, early 20th century)aged 1 year orless).Improvementsinsanitation, fooddistribution,etc..FeedbackfrombetterhealthTable 5.1Health in the Unitedto higher incomes to betterStates,1850and2013health@2015PearsonEducation,Inc
© 2015 Pearson Education, Inc. 4 Health Outcomes in the United States The last couple of centuries have brought incredible advances in health outcomes for Americans. Explanations: • Improvements in nutrition • Public health movement (late 19th, early 20th century) • Improvements in sanitation, food distribution, etc. • Feedback from better health to higher incomes to better health Health in the United States, 1850 and 2013 Table 5.1 Variable 1850 2013 Life expectancy at birth 38.3 years 78.7 years Average height (adult males) 5’7” 5’9” Infant mortality (death of a child aged 1 year or less) 228.9 per 1,000 live births 5.9 per 1,000 live births
The Improving Healthof the U.S.PopulationThe most dramaticgains inhealth haveoccurred in the 2oth903,000Deaths0century.Lifeexpectancysper100,000people2.500002,000(Mostly) steady50increasesinlife1,50040expectancy.Deathrate301,00020500Corresponding10decreasesintheo190019201940196019802000death rate(adjusted for lifeexpectancy)Figure 5.1aTheimprovinghealthof theU.S.population:lifeexpectancyatbirthandthedeathrateper100,000people inthe United States5@2015PearsonEducation,lnc
© 2015 Pearson Education, Inc. 5 The Improving Health of the U.S. Population The most dramatic gains in health have occurred in the 20th century. • (Mostly) steady increases in life expectancy. • Corresponding decreases in the death rate (adjusted for life expectancy). The improving health of the U.S. population: life expectancy at birth and the death rate per 100,000 people in the United States Figure 5.1a