1. HEA PTP: M207 Health Economics 1 Introducing Health Economics Economics, Health and Health Economics Key Economic Concepts Exercise Seminar Allocation

2. HEA PTP: M207 Health Economics 2 Economics, Health and Health Economics 1. What is Economics? 2. What is Health? 3. What is Health Economics?

3. HEA PTP: M207 Health Economics 3 What is Economics? Economics is … concerned with money? the same as accountancy? only practised by economists? objective?

4. HEA PTP: M207 Health Economics 4 Economics in a nutshell Resources are scarce What we want is unlimited Therefore involves choice Max. bens/min. resources = efficiency

5. HEA PTP: M207 Health Economics 5 Pessimist:bottle ½ empty Optimist:bottle ½ full Economist: bottle ½ wasted inefficient!

6. HEA PTP: M207 Health Economics 6 Economics and Money ECONOMICS = costs (resource use) benefits choice efficiency MONEY =store of value means of exchange

7. HEA PTP: M207 Health Economics 7 Economics Accountancy ECONOMICS= costs (resource use) benefits choice efficiency ACCOUNTANCY =monitor of financial transactions

8. HEA PTP: M207 Health Economics 8 Only Economists Practice Economics? ECONOMICS = costs (resource use) benefits CHOICE efficiency Weigh-up relative benefits of each course of action and choose the action which maximises well-being.

9. HEA PTP: M207 Health Economics 9 Economics Objective All decisions are based on subjective value judgements. Economics makes these explicit.

10. HEA PTP: M207 Health Economics 10 Topic Versus Discipline TOPIC = area of study DISCIPLINE = conceptual apparatus Health economics is the discipline of economics applied to the topic of health.

11. HEA PTP: M207 Health Economics 11 What is Health? World Health Organisation: Health is a state of complete physical, mental and social well-being Health Economics is often Health Care Economics.

12. HEA PTP: M207 Health Economics 12 Task of Economics Descriptive=quantification Predictive=identify impact of change Evaluative=relative preference over situations