Introducing Health Economics Economics Health and Health Economics

Economics, Health and Health Economics 1. What is “Economics”? 2. What is “Health”? 3.

What is “Economics”? Economics is … ¨ concerned with money? ¨ the same as

Economics in a nutshell ¨ Resources are scarce ¨ What we “want” is unlimited

Pessimist: bottle ½ empty Optimist: bottle ½ full Economist: bottle ½ wasted inefficient! HEA

Economics and Money ECONOMICS = costs (resource use) benefits choice efficiency MONEY HEA PTP:

Economics Accountancy ECONOMICS = costs (resource use) benefits choice efficiency ACCOUNTANCY = transactions HEA

Only Economists Practice Economics? ECONOMICS = benefits CHOICE efficiency costs (resource use) Weigh-up relative

Economics Objective All decisions are based on subjective value judgements. Economics makes these explicit.

Topic Versus Discipline TOPIC = DISCIPLINE = area of study conceptual apparatus Health economics

What is “Health”? World Health Organisation: Health is a “state of complete physical, mental

Task of Economics Descriptive = quantification Predictive = identify impact of change Evaluative =

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Introducing Health Economics ¨ Economics, Health and Health Economics ¨ Key Economic Concepts ¨ Exercise ¨ Seminar Allocation HEA PTP: M 207 Health Economics

Economics, Health and Health Economics 1. What is “Economics”? 2. What is “Health”? 3. What is “Health Economics”? HEA PTP: M 207 Health Economics

What is “Economics”? Economics is … ¨ concerned with money? ¨ the same as accountancy? ¨ only practised by economists? ¨ objective? HEA PTP: M 207 Health Economics

Economics in a nutshell ¨ Resources are scarce ¨ What we “want” is unlimited ¨ Therefore involves “choice” ¨ Max. bens/min. resources = efficiency HEA PTP: M 207 Health Economics

Pessimist: bottle ½ empty Optimist: bottle ½ full Economist: bottle ½ wasted inefficient! HEA PTP: M 207 Health Economics 5

Economics and Money ECONOMICS = costs (resource use) benefits choice efficiency MONEY HEA PTP: M 207 Health Economics = store of value means of exchange

Economics Accountancy ECONOMICS = costs (resource use) benefits choice efficiency ACCOUNTANCY = transactions HEA PTP: M 207 Health Economics monitor of financial

Only Economists Practice Economics? ECONOMICS = benefits CHOICE efficiency costs (resource use) Weigh-up relative benefits of each course of action and choose the action which maximises well-being. HEA PTP: M 207 Health Economics

Economics Objective All decisions are based on subjective value judgements. Economics makes these explicit. HEA PTP: M 207 Health Economics

Topic Versus Discipline TOPIC = DISCIPLINE = area of study conceptual apparatus Health economics is the discipline of economics applied to the topic of health. HEA PTP: M 207 Health Economics

What is “Health”? World Health Organisation: Health is a “state of complete physical, mental and social well-being “Health Economics” is often “Health Care” Economics. HEA PTP: M 207 Health Economics

Task of Economics Descriptive = quantification Predictive = identify impact of change Evaluative = relative preference over situations HEA PTP: M 207 Health Economics