American health care uniquely inefficient

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Question

Refer to the reading Is American Health Care Uniquely Inefficient. The authors here use the idea of the health production possibility frontier and the concepts of productive/allocative efficiency to explain the state of health in America.

Draw the production possibility frontier for a health outcome of your choice.

Referring to the figure, discuss the idea of productive efficiency and allocative efficiency.

One of the reasons why health care may be inefficient in the US is due to huge racial disparity in America. Use the concept of heterogeniety coupled with the production function to illustrate inefficiency due to heterogeneous population.

Ideally one would want to estimate the health production function for America. What are some basic challenges associated with estimating a health production function? Discuss.

Reference no: EM133568997

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