Draw a health production function with individuals receiving some health-producing intervention as inputs and health benefits as outputs that show declining returns in output. What does “declining returns” imply about the marginal health benefit per person served/treated along this production function? How does this relate to “specialization of inputs”? How about “selection to treatment”?

EBK HEALTH ECONOMICS AND POLICY
7th Edition
ISBN:9781337668279
Author:Henderson
Publisher:Henderson
Chapter12A: Appendix 12a Changing Demographics: The Aging Of America
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Draw a health production function with individuals receiving some health-producing intervention as inputs and health benefits as outputs that show declining returns in output. What does “declining returns” imply about the marginal health benefit per person served/treated along this production function? How does this relate to “specialization of inputs”? How about “selection to treatment”? 

 

 

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