PREVENTIVE VERSUS CURATIVE MEDICINE - A POLICY EXERCISE FOR THE CLASSROOM

Authors
HELWEGE A
Citation
A. Helwege, PREVENTIVE VERSUS CURATIVE MEDICINE - A POLICY EXERCISE FOR THE CLASSROOM, The Journal of economic education, 27(1), 1996, pp. 59
Citations number
27
Categorie Soggetti
Education & Educational Research",Economics
Journal title
The Journal of economic education → ACNP
ISSN journal
00220485
Volume
27
Issue
1
Year of publication
1996
Database
ISI
SICI code
0022-0485(1996)27:1<59:PVCM-A>2.0.ZU;2-X
Abstract
This classroom example shows students that neither a health insurer (w hich bears only the hospitalization costs of acute care) nor the patie nt (who incurs lost earnings and psychic costs) has an adequate incent ive to pay for preventive care, even though the total benefits of such care exceed its cost. The activity offers an application of concepts of efficiency, equity, present value, and moral hazard.