(财政学罗森第九版英文课件)Chap009The Health Care Market.ppt

* * * * Axes and labels 1st click – Dm 2nd click – Sm, 3rd click - brown rectangle 4th click - .2P0 5th click - gray rectangle 6th click – deadweight loss triangle 7th click – “Flat-of-the-curve medicine” * * * * * 9-* 9-* ? 2010 The McGraw-Hill Companies, All Rights Reserved McGraw-Hill/Irwin CHAPTER 9 The Health Care Market Copyright ? 2010 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin U.S. Expenditures of Selected Goods and Services as Share of GDP (1960-2007) Source: US Bureau of the Census [2009, pp. 95, 425], and National Income and Product Accounts Social Insurance Social insurance - government programs that provide insurance to protect against adverse events Examples Medicaid Medicare Social Security Unemployment Compensation How Health Insurance Works Insurance premium Expected Value Expected value (EV) = probability of outcome 1) * (Payout in outcome 1) + probability of outcome 2)*(Payout in outcome 2) + … + (probability of outcome n)*(Payout in outcome n) Expected Value Computation Draw cards from deck of cards Draw heart and receive $12 Draw spade, diamond or club and lose $4 Probability of drawing heart = 13/52 = ? Probability of drawing spade, diamond or club = 39/52 = ? EV = (1/4)($12) + (3/4)(-$4) = $0 Why Buy Insurance? Insurance Options Income Probability of Staying Healthy Probability of Getting Sick Lost Income if She Gets Sick (A) (B) (C) Income if She Stays Healthy Income if She Gets Sick Expected Value Option 1: No Insurance $50,000 9 in 10 1 in 10 $30,000 $50,000 $20,000 $47,000 Option 2: Full Insurance ($3,000 premium to cover $30,000 in losses $50,000 9 in 10 1 in 10 $30,000 $47,000 $47,000 $47,000 Actuarially Fair Insurance Policy Why People Buy Insurance Income Utility 20,000 47,000 50,000 UA UC UD UB D C B A Expected Utility Risk Smoothing Do People Buy Insurance with Loading Fees? Risk Aversion Risk Premium Loading Fee The Role of Risk Pooling Insurance in a small population Insura