Unbiased Analysis of Today's Healthcare Issues

Interesting paper measuring the option value

One key benefit new cancer treatments is not only that they improve survival, but also–in areas with a lot of treatment innovation–they that they allow some patients to live to receive the next treatment advance.  Although this concept may make sense intuitively, it is not clear how one could quantify this value. This is the […]

Read the rest of this entry »

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 […]

Read the rest of this entry »

Irreversibility and Medical Treatment

Irreversibility occurs when treatment in the current period alters the efficacy of treatments in the future. A paper by Zivin and Neidell (2010) give the following simple example: Examine the following table.  In the first scenario, the individual has disease X in two periods.  If he takes treatment 1 (T1) then he will recover 6 […]

Read the rest of this entry »