COVID-19 Update: We are currently shipping orders daily. However, due to transit disruptions in some geographies, deliveries may be delayed. To provide all customers with timely access to content, we are offering 50% off Science and Technology Print & eBook bundle options. Terms & conditions.
Handbook of Health Economics - 1st Edition - ISBN: 9780444535924, 9780444535931

Handbook of Health Economics, Volume 2

1st Edition

Editors: Mark Pauly Thomas McGuire Pedro Barros
eBook ISBN: 9780444535931
Hardcover ISBN: 9780444535924
Imprint: North Holland
Published Date: 5th December 2011
Page Count: 1152
Sales tax will be calculated at check-out Price includes VAT/GST
Price includes VAT/GST

Institutional Subscription

Secure Checkout

Personal information is secured with SSL technology.

Free Shipping

Free global shipping
No minimum order.

Table of Contents

  • Preface
  • Introduction
    • What were we Looking for?
    • What's New?
    • Differences in Approaches
    • How to Use Volume 2
    • Acknowledgements
  • Chapter One: Health Care Spending Growth
    • 1 Introduction
    • 2 Spending Growth vs. Spending Level
    • 3 Technology and Spending Growth
    • 4 Models of Spending Growth
    • 5 Empirical Evidence
    • 6 Value of Spending Growth
    • 7 Conclusion
    • References
  • Chapter Two: Causes and Consequences of Regional Variations in Health Care 1
    • 1 Introduction
    • 2 An Economic Model of Regional Variations in Health Care
    • 3 Empirical Evidence on Geographic Variations in Expenditures and Utilization
    • 4 Estimating the Consequences of Regional Variation: Geography As An Instrument
    • 5 Inefficiency and the Policy Implications of Regional Variations
    • 6 Regional Variations in Health Outcomes
    • 7 Discussion and Conclusion
    • References
  • Chapter Three: The Economics of Risky Health Behaviors 1
    • 1 Introduction
    • 2 The Traditional Economic Approach to Studying Health Behaviors
    • 3 Alternative Approaches to Studying Health Behaviors
    • 4 Economic Consequences of Health Behaviors
    • 5 Strategies for Modifying Health Behaviors
    • 6 Future Directions
    • References
  • Chapter Four: Improving Health in Developing Countries
    • 1 Introduction
    • 2 Conceptual Framework for Household Decision Making
    • 3 Externalities and Public Goods
    • 4 The Impact of Price and Convenience on Prevention Behavior Against Infectious Disease
    • 5 Incentives
    • 6 Consumer Behavior, Acute Treatment, and Insurance
    • 7 Liquidity Constraints and Consumer Behavior
    • 8 Behavioral Models and Health
    • 9 Information and Health Education
    • 10 Social Influences on Health Behavior
    • 11 Health Care Supply in the Developing World: Background
    • 12 Health Care Delivery and System Reform
    • 13 Interactions between Health and Broader Socio-Economic Variables
    • 14 Conclusion
    • References
  • Chapter Five: Demand for Health Insurance 1
    • 1 Introduction and Overview: Health Systems With Choice of Health Insurance
    • 2 Optimal Demand-Side Cost Sharing
    • 3 Supply-Side Policies and Demand-Side Coverage
    • 4 Structuring Choice of Health Insurance
    • 5 Final Comments
    • References
  • Chapter Six: Who Ordered That? The Economics of Treatment Choices in Medical Care
    • 1 Introduction
    • 2 Heterogeneity In Demand
    • 3 Supply-Side Drivers of Clinical Decisions
    • 4 Situational Factors
    • 5 Conclusion
    • References
  • Chapter Seven: Theoretical Issues Relevant to the Economic Evaluation of Health Technologies 1
    • 1 Introduction
    • 2 Standard Approaches to Methodological Issues in Cost-effectiveness Analysis
    • 3 Theoretical Foundations of CEA
    • 4 Continuing Debates in CEA
    • 5 Concluding Comments
    • References
  • Chapter Eight: Cost Effectiveness and Payment Policy
    • 1 Introduction
    • 2 Measuring the Value of Health Interventions and Health System Performance
    • 3 Use of Cost-effectiveness Analysis for Decision Making
    • 4 Application to Payment and Coverage Policy
    • References
  • Chapter Nine: Competition in Health Care Markets 1
    • 1 Introduction
    • 2 Entry, Exit, and Technology Investments by Providers
    • 3 Hospital Market Structure, Competition, and Prices
    • 4 Hospital Competition and Quality
    • 5 Studies of Health Insurance Markets
    • 6 Studies of Physician Services Markets
    • 7 Vertical Restraints and Monopsony
    • 8 Summary and Conclusions
    • References
  • Chapter Ten: Health Care Markets, Regulators, and Certifiers
    • 1 Introduction
    • 2 Health Care Market Failure
    • 3 Market Structure and Provider Performance
    • 4 Regulating Prices
    • 5 Third Party Information Disclosure
    • 6 Concluding Remarks
    • References
  • Chapter Eleven: Health Care Spending Risk, Health Insurance, and Payment to Health Plans
    • 1 Variation in Health Care Spending Between Persons and Over Time
    • 2 Insurance Market Equilibrium with Risk Variation and Rating Variation: Market Equilibrium Benchmarks
    • 3 Group Insurance
    • 4 Public Policy Toward Risk Variation
    • 5 Empirical Evidence on Insurance Market Performance
    • 6 Interactions Between Risk Variation and Other Topics in Health Economics
    • 7 Conclusion
    • References
  • Chapter Twelve: Markets for Pharmaceutical Products 1
    • 1 Introduction
    • 2 Overview of Regulation
    • 3 Basic Facts on Pharmaceutical Expenditures and Prices
    • 4 Market Structure
    • 5 Competition
    • 6 Pricing and Marketing
    • 7 Marketing of Pharmaceuticals in the United States
    • 8 Conclusion
    • References
  • Chapter Thirteen: Intellectual Property, Information Technology, Biomedical Research, and Marketing of Patented Products
    • 1 Introduction
    • 2 Forms of Intellectual Property Protection
    • 3 Market Exclusivity and the Incentives to Innovate
    • 4 The Normative Theory of Market Exclusivity
    • 5 The Role of IP in Solving Production Externalities
    • 6 Alternative Approaches to Stimulating Discovery
    • References
  • Chapter Fourteen: Medical Workforce
    • 1 Introduction
    • 2 Perfectly Functioning Medical Labor Markets
    • 3 Labor Supply Topics
    • 4 Labor Demand Topics
    • 5 Areas for Future Research
    • References
  • Chapter Fifteen: Public and Private Sector Interface
    • 1 Introduction
    • 2 Theory
    • 3 Empirical Evidence
    • 4 Conclusions
    • References
  • Chapter Sixteen: Equity in Health and Health Care 1
    • 1 Introduction
    • 2 An Example
    • 3 Socioeconomic Inequity and Racial Disparities in Health and Health Care
    • 4 A More General Approach? Equality of Opportunity in Health and Health Care
    • 5 Why Care About Equity in Health? Health and Well-being
    • 6 Conclusion
    • References
  • Index


What new theories, evidence, and policies have shaped health economics in the 21st century?

Editors Mark Pauly, Thomas McGuire, and Pedro Pita Barros assemble the expertise of leading authorities in this survey of substantive issues. In 16 chapters they cover recent developments in health economics, from medical spending growth to the demand for health care, the markets for pharmaceutical products, the medical workforce, and equity in health and health care. Its global perspective, including an emphasis on low and middle-income countries, will result in the same high citations that made Volume 1 (2000) a foundational text.

Key Features

  • Presents coherent summaries of major subjects and methodologies, marking important advances and revisions.
  • Serves as a frequently used non-journal reference.
  • Introduces non-economists to the best research in health economics.


Graduate students and professors worldwide working in all subdisciplines of economics and finance.


No. of pages:
© North Holland 2012
5th December 2011
North Holland
eBook ISBN:
Hardcover ISBN:


"The Handbook of Health Economics has been at the core of the reading list for our graduate programme since its original publication. This new volume will enhance its position as a comprehensive and authoritative guide to the literature and broadens the scope of the original Handbook."

--Andrew M. Jones, University of York


 "This wholly-new Handbook is wonderfully up-to-date, comprehensive, accessible, and destined to be widely read by researchers, students, and policymakers. Kudos for having commissioned such outstanding authors and chosen these topics for coverage."

--Randall P. Ellis, Boston University, and President, American Society of Health Economists (ASHEcon)


"An absolutely vital must-have reference volume.  The sixteen chapters provide detailed, thorough and readable surveys of current conceptual and empirical issues, each written by distinguished active researchers."

--Ernst R. Berndt, Massachusetts Institute of Technology and the Harvard-MIT Division of Health Sciences and Technology


"Volume 1 of the Handbook rapidly gained a place amongst the most used – and borrowed - books on the shelf. Now Volume 2 looks certain to match that success, comprehensively covering more recent developments and the burgeoning international health economics literature with authority, concision and verve. Essential."

--Alastair Gray, University of Oxford

Ratings and Reviews

About the Editors

Mark Pauly

Mark Pauly is Bendheim Professor, Professor of Health Care Management, Professor of Business and Public Policy, Professor of Insurance and Risk Management, and Professor of Economics at the Wharton School of Business, University of Pennsylvania.

Thomas McGuire

Thomas McGuire is a Professor of Health Economics in the Department of Health Care Policy at Harvard Medical School and a Research Associate at the National Bureau of Economic Research. His research focuses on the design and impact of health care payment systems, the economics of health care disparities, and the economics of mental health policy and drug regulation and payment. McGuire has contributed to the theory of physician, hospital, and health plan payment. McGuire was a co-editor of the Handbook of Health Economics Volume 2 (2012) and recently completed ten years as an editor of the Journal of Health Economics.

Affiliations and Expertise

Professor of Health Economics, Department of Health Care Policy, Harvard Medical School and Research Associate, National Bureau of Economic Research

Pedro Barros

Pedro Pita Barros is the 2005 winner of the "Grande-Oficial da Ordem do Infante D. Henrique," awarded by the President of Portugal. He is Editor-in-Chief of the journal "Economia da Saude - Conceitos e Comportamentos."