CHAPTER 21 ECONOMIC EPIDEMIOLOGY
CHAPTER 21 ECONOMIC EPIDEMIOLOGY
Intro Epidemiology is the study of how diseases spread. What does this have to do with economics? People change their behavior in response to the possibility of illness Understanding this phenomenon is critical to measuring the costs of an epidemic and designing policies to limit disease spread Bhattacharya,Hyde and Tu-HealthEconomics
Bhattacharya, Hyde and Tu – Health Economics Intro Epidemiology is the study of how diseases spread. What does this have to do with economics? People change their behavior in response to the possibility of illness Understanding this phenomenon is critical to measuring the costs of an epidemic and designing policies to limit disease spread
THE DEMAND FOR SELF-PROTECTION Ch 21 Economic epidemiology
Ch 21| Economic epidemiology THE DEMAND FOR SELF-PROTECTION
Demand for self protection People are willing to give up desirable things and undertake costly measures to avoid illness Think of disease as a kind of tax You only pay "tax"if you get sick You are more likely to get sick(have a higher tax bill) if you do certain things You take costly measures to avoid getting sick Bhattacharya,Hyde and Tu-HealthEconomics
Bhattacharya, Hyde and Tu – Health Economics Demand for self protection People are willing to give up desirable things and undertake costly measures to avoid illness Think of disease as a kind of tax You only pay “tax” if you get sick You are more likely to get sick (have a higher tax bill) if you do certain things You take costly measures to avoid getting sick
Excess burden and epidemiological costs Excess burden:the cost associated with the activities people undertake in order to avoid a disease Cost of missed work/school days Cost of vaccines,face masks,condoms Lost tourism in malaria-infested regions Epidemiological cost:direct costs of a disease Pain and suffering from symptoms ▣Cost of medical care Reduced life expectancy Oftentimes,we forget to consider excess burden when considering an epidemic's "cost' Total economic cost epidemiological cost excess burden Bhattacharya,Hyde and Tu-HealthEconomics
Bhattacharya, Hyde and Tu – Health Economics Excess burden and epidemiological costs Excess burden: the cost associated with the activities people undertake in order to avoid a disease Cost of missed work/school days Cost of vaccines, face masks, condoms Lost tourism in malaria-infested regions Epidemiological cost: direct costs of a disease Pain and suffering from symptoms Cost of medical care Reduced life expectancy Oftentimes, we forget to consider excess burden when considering an epidemic’ s “cost” Total economic cost = epidemiological cost + excess burden