Introducing Health Economics Economics Health and Health Economics

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Introducing Health Economics ¨ Economics, Health and Health Economics ¨ Key Economic Concepts ¨

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.

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

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

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

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:

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

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

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.

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

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

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 =

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