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Economics of Public Health Nursing: Allocation and Decision Making

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Presentation Transcript

  1. Chapter 8 Economics of Public Health Nursing

  2. Economics • Study of how scarce resources are allocated • Supply • Demand

  3. Economics • Allocation of scarce resources • Opportunity costs • Preferences • Uncertainty

  4. Economic Decision Making • Economic logic • Scarcity • Preference • Opportunity costs • Uncertainty

  5. Basic Economic Reasoning • Decision making at the margin • Marginal benefit • Utility • Profit

  6. Economic Reasoning in Public Health • Profit maximization and cost minimization • Fixed cost • Variable cost • Efficiency • Technical efficiency • Technical rate of substitution • Allocative efficiency

  7. Economic Reasoning in Public Health • Economics of for-profit and not-for-profit organizations’ behavior • Organizational objectives • Minimizing costs • Discount rate

  8. Economic Reasoning in Public Health • Economics of an individual investment in health • Health promotion and disease prevention • Motivation • Valuing the future

  9. Economic Reasoning in Public Health • Effects of one person’s behavior on another person’s health • Externalities • Positive: Immunizations • Negative: Smoking

  10. Economic Reasoning in Public Health • Decisions under uncertainty • S-CHIP • Economic evaluation using cost benefit and cost effectiveness analyses • Cost benefit • Cost effectiveness analysis • Quality Adjusted Life Year (QALY)

  11. Economic Reasoning • Economics of the public health nurse labor market • Labor supply curve • Reservation wage • Individual motivation to work • Backward bending supply curve

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