Willingness to pay for lipid lowering: a health production function approach

1993 ◽  
Vol 25 (8) ◽  
pp. 1023-1031 ◽  
Author(s):  
Mangnus Johannesson ◽  
Per-Olov Johannsson ◽  
Bengt Kristrõm ◽  
Lars Borgquist ◽  
Bengt Jõnsson
2004 ◽  
Vol 9 (1) ◽  
pp. 83-106 ◽  
Author(s):  
PURNAMITA DASGUPTA

Diarrhoeal diseases are endemic in Delhi. The causes of diarrhoeal illness involve both the household and the public sector as a provider of a public good, namely water supplies. Questions of both adequacy and quality of the water supply available to the household for drinking purposes are of crucial importance. The present study conducts an objective assessment of the health damages incurred by urban households by adopting a health production function approach. A model for valuing the damages from contaminated water supplies, based on the theory of utility-maximizing consumer behaviour is developed for estimating the probability of illness for a household. An estimate for the predicted probability of observing illness in a household is obtained. This probability measure is subsequently used along with data on illness to derive treatment costs and the wage-loss arising from the illness. Thus, a measure of the total costs of illness is obtained.


Author(s):  
Jan Abel Olsen

Chapter 1 provides a contextual frame for the book. An inquiry into the key concepts of health and healthcare is followed by an illustration of the general health production function, that is, the association between increasing healthcare inputs and resulting health outcomes. The important message is the pattern of positive but diminishing effects of healthcare on health: more healthcare improves health, but at a diminishing rate. The production function is also illustrated at the macro level: when considering the poor countries of the world, a strong association is observed between increased healthcare spending and the country’s life expectancy. However, among rich countries we observe a strongly diminishing effect of increased healthcare spending. Some further international comparisons are included to show that the richer a country gets, the higher the proportion of wealth it spends on healthcare.


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