Unbiased Analysis of Today's Healthcare Issues

Archive for the 'Economics – General' Category

Comparing Cost-Benefit Analysis and Social Welfare Functions

When evaluating whether a policy or medical treatment approved, policymakers often rely on cost-benefit analysis (CBA).  However, how does one measure costs and benefits?  Costs are often measured in monetary terms and benefits are often measured as decreases in mortality or morbidity. One way to ensure to tradeoff cost and benefits is to monetize health […]

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Macroeconomic Variables Around the World

What is the GDP of Azerbaijan?  What is the Estonia’s exchange rate?  Is inflation a problem in Sri Lanka? To answer all these questions, you need a variety of macroeconomic variables from each of these countries.  Further, these measures must be standardized across countries.  Wouldn’t it be nice if this data exist? It turns out […]

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2013 Nobel Prize in Economics: Fama, Hansen and Shiller

Today, the Nobel Prize in Economics was awarded to Eugene F. Fama, Lars Peter Hansen and Robert J. Shiller. Here is a summary of their contribution to the field which earned them the award. Eugene Fama. Beginning in the 1960s, Eugene Fama and several collaborators demonstrated that stock prices are extremely difficult to predict in […]

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Productivity Spillovers: The Case of AMI

The Healthcare Economist has written a lot about the fact that there exists significant regional variation in health care spending.  Is this due to a provider cultural norms?  Or are other factors at play? A paper by Chandra and Staiger (2007) claim that productivity spillovers may explain this results.  I summarize their proposition in more […]

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How does one measure the value of R&D?

Measuring the value of research and development (R&D) is a difficult problem.  Specifically, how does one measure the value of R&D on multifactor productivity (MFP).   At first glance, one would expect the value of R&D to be proportional to R&D spending in a given year.  However, this approach ignores that knowledge from previous years’ R&D […]

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Pension Obligations by State

Detroit recently declared bankruptcy. But it may not be the last state or municipal government to do so.  Many states are not fully funding their pension obligations to state workers.  How much money do state residents need to contribute to fully fund their state’s pension obligation? According to a study by Novy Marx and Rauh, […]

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Option Theory and Foul Trouble

Some non-healthcare reading from Wages of Wins as the NBA playoffs are upon us.  Should a coach bench a starter in foul trouble?  Doesn’t reducing a high-quality player’s aggregate minutes adverse affect a team and thus coaches should let players play regardless of the number of fouls they have? It turns out that the optimal […]

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Quotation of the Day

“When you have a hammer, everything looks like a nail.”   Picture hat tip to Wages of Wins.

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Our Monopoly Economy

Via The Atlantic: Four airlines control 69% of domestic air travel Amazon sells 27% of consumer books in the U.S.; Barnes & Noble sells 16% Walmart sells 57% of Americans’ groceries Universal Music Group controls 38% of the global market for recorded music Anheuser-Busch InBev sells 39% of beer in the U.S.; Miller-Coors sells 26% […]

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Shapley Value

  What is the Shapley Value?  The Shapley value determines the relative importance of different individuals within a cooperative game.  For instance, who is more important: the owner or the workers?  Without an owner supplying capital, there would be business to start.  Without workers to produce goods, there would be no output to sell.  Thus, […]

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