Health Economics Comprehensive Examination - Flashcards

A treatment costs <strong>$40,000</strong> and provides a <strong>0.5</strong> probability of living one extra year in <strong>perfect health ($q=1.0$)</strong>. Calculate the <strong>cost per QALY</strong> (ignoring discounting).

Contrast the <strong>Grossman view</strong> versus the <strong>Fuchs view</strong> regarding the positive correlation between <strong>education</strong> and <strong>health</strong>.

How does a <strong>wage increase</strong> affect the <strong>optimal health stock ($H^*$)</strong> in the Grossman Model?