Podcast
Questions and Answers
Which of the following best describes the finding of Piketty (2013) regarding returns?
Which of the following best describes the finding of Piketty (2013) regarding returns?
According to the content, what is a key characteristic of the Laffer curve, as suggested by Trabandt and Uhlig (2011)?
According to the content, what is a key characteristic of the Laffer curve, as suggested by Trabandt and Uhlig (2011)?
Which concept did Rawls (1971) use to propose about how to achieve a theory of justice?
Which concept did Rawls (1971) use to propose about how to achieve a theory of justice?
What did Gasper (2002) observe regarding the practical measurement of utility in policy analysis?
What did Gasper (2002) observe regarding the practical measurement of utility in policy analysis?
Signup and view all the answers
Which of the following best represents the empirical finding by Boning et al.(2023) regarding tax audit funding?
Which of the following best represents the empirical finding by Boning et al.(2023) regarding tax audit funding?
Signup and view all the answers
Which of the following best describes a criticism of the Quality-Adjusted Life Year (QALY) approach?
Which of the following best describes a criticism of the Quality-Adjusted Life Year (QALY) approach?
Signup and view all the answers
What is a key difference between QALYs and GRA-QALYs?
What is a key difference between QALYs and GRA-QALYs?
Signup and view all the answers
According to the literature, what is a primary concern regarding private insurance markets?
According to the literature, what is a primary concern regarding private insurance markets?
Signup and view all the answers
Sen's capability approach is presented as an improvement over which other theories of justice?
Sen's capability approach is presented as an improvement over which other theories of justice?
Signup and view all the answers
A criticism of Nussbaum's approach to the Capability Framework suggests:
A criticism of Nussbaum's approach to the Capability Framework suggests:
Signup and view all the answers
What does the literature suggest about the application of Sen's capability approach regarding justice?
What does the literature suggest about the application of Sen's capability approach regarding justice?
Signup and view all the answers
What is the main critique of Pay-As-You-Go (PAYG) pension systems outlined in the literature?
What is the main critique of Pay-As-You-Go (PAYG) pension systems outlined in the literature?
Signup and view all the answers
What viewpoint about savings and economic growth is most commonly held by economists from the information provided?
What viewpoint about savings and economic growth is most commonly held by economists from the information provided?
Signup and view all the answers
In 1997 there was an insignificant relationship between funding system and ______
In 1997 there was an insignificant relationship between funding system and ______
Signup and view all the answers
According to the research, the Laffer curve was used to justify tax cuts in the UK and US in the 1980s according to ______ (2012).
According to the research, the Laffer curve was used to justify tax cuts in the UK and US in the 1980s according to ______ (2012).
Signup and view all the answers
The idea that there is a trade-off in values of policymaking was introduced by ______ (1965).
The idea that there is a trade-off in values of policymaking was introduced by ______ (1965).
Signup and view all the answers
Rawls (1971) used the “______ of ignorance” thought experiment to explore ideas about justice.
Rawls (1971) used the “______ of ignorance” thought experiment to explore ideas about justice.
Signup and view all the answers
______ (1975) used the leaky bucket metaphor, in relation to trade-offs
______ (1975) used the leaky bucket metaphor, in relation to trade-offs
Signup and view all the answers
Weinstein et al. (2009) introduced the concept of ______ for measuring health outcomes.
Weinstein et al. (2009) introduced the concept of ______ for measuring health outcomes.
Signup and view all the answers
Ward (2023) critiques QALYs for potentially discriminating against the ______.
Ward (2023) critiques QALYs for potentially discriminating against the ______.
Signup and view all the answers
Murray (1994) is associated with the development of ______, another measure focusing on health and disease burden.
Murray (1994) is associated with the development of ______, another measure focusing on health and disease burden.
Signup and view all the answers
Lakdawalla and Phelps (2020) proposed ______ that increase the value placed on health improvements for those with poorer health prospects.
Lakdawalla and Phelps (2020) proposed ______ that increase the value placed on health improvements for those with poorer health prospects.
Signup and view all the answers
Rothchild and Stiglitz (1976) explained the ______ effects in private insurance.
Rothchild and Stiglitz (1976) explained the ______ effects in private insurance.
Signup and view all the answers
Sen's (2000) theory of justice uses the ______ approach as a framework.
Sen's (2000) theory of justice uses the ______ approach as a framework.
Signup and view all the answers
Nussbaum (2003) proposes a list of ten things that represent a good life as a more concrete alternative to the vague nature of the ______ approach.
Nussbaum (2003) proposes a list of ten things that represent a good life as a more concrete alternative to the vague nature of the ______ approach.
Signup and view all the answers
According to the provided text, most economists disagree with the notion that ______ promote economic growth.
According to the provided text, most economists disagree with the notion that ______ promote economic growth.
Signup and view all the answers
Study Notes
Health Outcomes Measurement
- QALY (Quality-Adjusted Life Year): A method for measuring health outcomes, introduced by Weinstein et al. (2009). Criticized by Ward (2023) for potential discrimination against older individuals, though Feng et al. (2024) found no empirical evidence of such bias. Risk aversion is a more realistic approach.
- DALY (Disability Adjusted Life Year): Introduced by Murray (1994), used to measure disease burden. Also criticized for potential elder discrimination by Anand and Hanson (1997). Feng et al. (2020) found similar results regarding older individuals as the QALY method.
- GRA-QALY (Growing Risk Aversion-QALY): Introduced by Lakdawalla and Phelps (2020), aims to improve evaluations of health prospects. Reported to be more equitable for drug pricing by Li et al. (2024), placing more value on improved health when facing bleaker possibilities.
- Significant Difference in Preferences: Weyler and Gandjour (2011) observed significant preferences differences between individuals affected by illness and the general community, while Klimchak et al. (2024) presented a case study of rejected free disability treatment.
Private Insurance
- Adverse Selection: Rothchild and Stiglitz (1976) identified adverse selection as a potential issue in private insurance.
- Moral Hazard: Pauly (1974) introduced moral hazard effects in private insurance. Wong et al. (2011) found empirical evidence for both adverse selection and moral hazard, but the effects were less severe than predicted primarily by adverse selection.
Capability Approach
- Theory of Justice: Sen (2000) developed a theory of justice based on the capability approach, which outperforms libertarian and Rawlsian theories. It is ethically individualistic, but not ontologically.
- Accessibility Adjustments: Robeyns (2005) highlighted utilitarianism's failure to account for accessibility adjustments.
- Vague and Democratic Deliberation: Nussbaum (2003) acknowledged the vagueness of the capability approach and noted how democratic deliberation could lead to undesirable outcomes.
- List of Good Life Elements: Nussbaum (2003) proposed a list of 10 elements representing a good life.
- Context Dependence: Sen (2004a) emphasized the need for context-dependent lists of good life elements.
- Indifferentiable from Utility: Gasper (2002) observed that the capability approach can become indistinguishable from the utility approach in practice.
- Stratified Model: Jackson (2005) proposed a stratified model of justice, incorporating individual capabilities and social structures.
- Opportunity, Not Procedure: Sen (2004b) acknowledged that his theory focuses on opportunity aspects of justice, excluding procedural aspects.
Pensions
- Overlapping Generations Model: Kanganovich and Zilcha (2012) derived pension equations using an overlapping generations model.
- Sweden's PAYG System: Lundberg (2024) analyzed Sweden's PAYG (pay-as-you-go) pension system, revealing initial favoritism towards the original generation, but subsequent reforms effectively mitigated intergenerational inequalities.
- Ageing Population Impact: Febero and Cadraso (2007) noted the decline in labor supply due to aging populations, potentially impacting profits and returns.
- Savings and Growth: Most economists disagree that savings invariably promote economic growth.
- Funding System and Savings Relationship: Mackenzie et al. (1997) found a weak relationship between the pension funding system and savings.
- Volatile Returns: Piketty (2013) highlighted the risks associated with volatile investment returns during transitions, stating that a whole generation might not receive returns.
Optimal Taxation
- Laffer Curve: Laffer (2004) introduced the Laffer curve model.
- UK & US Tax Cuts (1980s): Cooper (2012) noted the use of the Laffer curve to justify tax cuts in the UK and US during the 1980s.
- Low Taxable Income Elasticity (Denmark): Kleven and Schultz (2014) documented low taxable income elasticity in Denmark, underscoring the need for broad tax bases and extensive information reporting.
- Tax Audit Funding Returns: Boning et al. (2023) found disproportionately high returns from increased tax audit funding in the US.
- Meltzer and Richard (1981) Effect: Trabandt and Uhlig (2011) estimated the Laffer curve peak revenue. Kang and Seo (2023) found empirical support for this model to be weak, especially in captured democracies.
- Optimal Tax Rate: Saez (2001) proposed an optimal tax rate ranging from approximately 43% to 65%.
Equity vs Efficiency
- Trade-off in Policy-Making: Barry (1965) introduced the concept of a trade-off between equity and efficiency in policy decisions.
- Equity as a Core Principle: Rawls (1971) argued that equity is central to his theory of justice.
- Least Cost Efficiency: Le Grand (1990) viewed efficiency as least cost, making it a secondary objective, so no inherent trade-off may exist.
- Equity Ignoring Abilities: Varian (1974) noted limitations in equity definitions that ignore individual abilities.
- Equity as Envy: Varian (1974) also examined equity as defined by envy and its possible trade-off with Pareto optimality.
- Utility Proxied by Income: Gasper (2002) observed the common practice of proxying utility by income.
- Leaky Bucket Metaphor: Okun (1975) used the "leaky bucket" analogy to illustrate the relationship between equity and efficiency.
- Growth Equity Trade Off: Anderson and Maiborn (2019) presented evidence of a potential trade-off between growth and equity.
- Lower Development Levels: Dollar et al. (2016) found no evidence of a trade-off at lower development levels.
- Public Service Synergy: Liu (2012) suggested synergies from public service expenditures.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Test your knowledge on various health outcomes measurement methods such as QALY, DALY, and GRA-QALY. This quiz explores the implications of these metrics, including criticisms and empirical findings from recent studies. Perfect for those interested in health economics and outcomes research.
