September, 2007

Don’t Pretend It’s Easy

by David M. Cutler
The Conversation
September 22nd, 2007

Per capita income in the United States is 30 percent higher than in Sweden, and yet Americans are no happier than Swedes; indeed, Swedes report greater levels of happiness. Based on these data, can one conclude that cutting income in the United States by 30 percent across the board would leave Americans unaffected? Of course, [...]

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What Is the Effect of a Price Increase?

by Alan Garber
The Conversation
September 21st, 2007

What is the effect of a price increase?  The conventional answer that quantities consumed will decrease along a demand curve doesn’t always apply in health care.  The question isn’t even answerable without describing which price is being increased and specifying the mechanism for the price increase.  The price of a medical product or service usually [...]

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