Pdf Micro And Macro Economics In Healthcare


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17.05.2021 at 10:20
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The contention within health economics: A micro-economic foundation using a macro-economic analysis

Economists use micro-based and macro-based approaches to assess the effects of health on economic growth. The micro-based approach tends to find smaller effects than the macro-based approach, thus presenting a micro-macro puzzle regarding the economic return on health. We reconcile these two strands of literature by showing that the point estimate of the macroeconomic effect of health is quantitatively close to that found by aggregating the microeconomic effects, when carefully specifying the estimation equations and controlling for spillovers of health at the aggregate level. Our results justify using the micro-based approach to estimate the direct economic benefits of health interventions. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research. Download Citation Data.

Microeconomics

The word "economics" has its origins in the ancient Greek words for "house" and "custom or law. Microeconomics and macroeconomics are the discipline's two main sub-fields. Microeconomics focuses on the behavior of individuals and firms within markets. Macroeconomics, on the other hand, is concerned with large-scale issues related to markets as a whole. These include national economic planning and monetary policy, among others. How does any of this relate to healthcare? Well, healthcare is not free.

What Is Healthcare Economics?

One goal of microeconomics is to analyze the market mechanisms that establish relative prices among goods and services and allocate limited resources among alternative uses. Microeconomics shows conditions under which free markets lead to desirable allocations. It also analyzes market failure , where markets fail to produce efficient results. While microeconomics focuses on firms and individuals, macroeconomics focuses on the sum total of economic activity, dealing with the issues of growth , inflation , and unemployment and with national policies relating to these issues. Microeconomic theory typically begins with the study of a single rational and utility maximizing individual.

Medical education is expensive. Value for money may be evaluated by means of a number of different analyses: these include but are not limited to cost effectiveness, cost benefit and cost utility studies. Generally the payer will be the individual or the government or a mixture of the two. These two stakeholders will naturally have different priorities and how we look at the issue of cost and value in medical education will depend on the stakeholder involved.

Medical education: microeconomics or macroeconomics?

Macroeconomics is the study of the performance, structure, behavior and decision-making of an economy as a whole.

Macroeconomics

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Health economists claim to use market economics combined with the microeconomic concepts of opportunity cost and the margin to advise on priority setting.

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