This book focuses on the role of incentives in health and health care decision making. Drawing on various concepts and empirical findings, it explores how incentives affect the behavior of patients, physicians, hospitals, and other health care providers. It provides an overview of health economics from a public policy perspective and considers issues about the demand for health and health care. It also discusses two key issues in the insurance market, adverse selection and moral hazard, as well as direct-to-consumer advertising of prescription drugs in the United States and New Zealand. Moreover, the book looks at the supply of personal health services, the rates of return on medical education, the role of incentives in pharmaceutical innovation, whether physicians can and do induce demand for their products, pay for performance, and public provision of information about hospital quality.
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