Do patients follow prescribed medical treatment more closely when a pharmacy opens in their neighborhood? How do hospitals respond to performance-based incentives to improve the quality of care?
The availability of large, easily accessible datasets allows ready economic analysis of the healthcare sector today.
Price theory combines theoretical and empirical analysis to better understand economic decision-making. This powerful tool is an essential approach for examining health and the function of health care markets and policies.
When the government denies disability benefits to applicants who are married, spouses step up and earn more. But single individuals saw their incomes decline, managing to earn back only a small share of the denied benefit.
What is the best way to improve access to healthcare in poorer parts of the world? Will people value and utilize free insurance the same way they would a cash payment?
Under the Affordable Care Act, insurers can no longer deny or price medical coverage based on pre-existing conditions. This offers enormous benefits to those who could not obtain or afford adequate coverage—and potentially enormous risks to health insurance markets.
The high cost of capital for firms conducting medical research and development (R&D) has been partly attributed to the government risk facing investors in medical innovation. This risk slows down medical innovation because investors must be compensated for it. We propose new and simple financial instruments, Food and Drug Administration (FDA) hedges, to allow medical R&D investors to better share the pipeline risk associated with FDA approval with broader capital markets.
Why do insurers choose to exclude medical providers, and when would this be socially desirable? We examine network design from the perspective of a profit maximizing insurer and a social planner in order to evaluate the effects of narrow networks and restrictions on their use—a form of quality regulation. An insurer may wish to exclude hospitals in order to steer patients to less expensive providers, cream-skim enrollees, and negotiate lower reimbursement rates.