TAILIEUCHUNG - Lecture note Public finance (10th Edition) - Chapter 9: The health care market

In this chapter, the following content will be discussed: Individuals buy health insurance in order to guarantee a certain level of consumption; pooling individuals into one insurance program can lower risk and thus premiums; justifications for government intervention in the health insurance market include adverse selection, moral hazard, commodity egalitarianism, and health care externalities. | THE HEALTH CARE MARKET Chapter 9 . Expenditures of Selected Goods and Services as Share of GDP (1960-2010) Source: Centers for Medicare & Medicaid Services, National Health Expenditure Data, and National Income and Product Accounts 9- Social Insurance Social insurance - government programs that provide insurance to protect against adverse events Examples Medicaid Medicare Social Security Unemployment Compensation 9- How Health Insurance Works Insurance premium: money paid to an insurance company in exchange for compensation if an adverse event occurs People are willing to pay for insurance because of -1) Expected Value= (probability of outcome 1)*(Payout in outcome 1) + (probability of outcome 2)*(Payout in outcome 2) + + (probability of outcome n)*(Payout in outcome n) -2) Risk smoothing: paying money in order to guarantee a certain level of consumption should an adverse event occur 9- Example of Expected Value Computation Draw cards from deck of cards .

• Tài chính doanh nghiệp
• Public finance
• Lecture Public finance
• Public Economics
• Health care market
• Income Growth
• Improvements in Quality
• Federal system
• Fiscal federalism
• Public expenditure
• Public good
• Public spending
• Public education
• Tiebout model
• Public sector economics
• Federal government
• The corporation tax
• Tax equity
• Public goods
• Public services
• Inflation taxation
• Education Increase Earnings
• Public education improves quality
• Interpreting deficit
• Burden of the debt
• Neoclassical model
• Political economy
• Median voter model
• Special interest
• Public economy
• Legal framework
• Local governments
• Market mechanism
• Coase Theorem
• Public Responses
• Public employees
• Representative democracy
• Tools of positive analysis
• Positive analysis
• Empirical work
• Normative analysis
• Tools of normative analysis
• Welfare economics
• Nature of externalities
• Graphical analysis
• Cost benefit analysis
• Internal rate
• Benefit cost ratio
• Social insurance
• Risk pooling
• Moral hazard
• Market for health care
• Private health insurance
• Health insurance
• Social security
• Benefit structure
• Savings behavior
• Income redistribution
• Distributional dataissues
• Income inequality
• Expenditure programs
• Expenditure programs for the poor
• Work incentives
• Income distribution
• Tax incidence
• Partial equilibrium models
• Tax on consumption bundle
• Excess burden
• Demand curves
• Equitable taxation
• Optimal commodity taxation
• The ramsey rule
• Personal income tax
• Haig simons income
• Capital gains
• Personal taxation
• Human capital accumulation
• Labor supply