Decisions under ambiguity

In health care, decisions are always made with imperfect information.  How ambiguity affects stakeholder decisionmaking and in particular how ambiguity interacts with risk preferences to affect decisions is unknown.  A paper by Attema, Bleichrodt and L’Haridon (2018) aims to answer this question using a general ambiguity model.  They find that: For health gains, ambiguity preferences…

Estimating the price elasticity of demand through value-based formulary designs

In 2010, Premera Blue Cross (Premera), a large nonprofit health plan in the Pacific Northwest implemented a value-based formulary design for its beneficiaries.   In essence, enrollees could purchase high-value treatments for low copayments and low-value treatments for higher copayments.  Can we use this change from more standard to value-base formulary designs to estimate the price elasticity…

Medical innovation improves not just health but labor market outcomes

An interesting study from Garthwaite 2012 examines  the removal of Cox-2 inhibitors.  Rather than measuring the direct effect of Cox-2 inhibitors on quality of life or health status, Garthwaite examines how this removal affected labor market outcomes. Despite dramatic improvements in medical technology, little attention has been paid to the role of these innovations in…

MacArthur “Genius” Fellows announced

This year’s MacArthur “Genius” Fellows were announced today.  While there is a great diversity of amazing individuals receiving the grants, I will focus on those related to the health care space: Amy Finkelstein: health economist, at MIT, who is formulating robust experimental designs that provide data-driven guidance for innovations in health care theory, policy, and delivery…

Does physician knowledge of patient non-compliance change prescribing behavior in the real world?

This is the topic of a recent publication with co-authors Kata Bognar, Katie Everson, Michelle Brauer, Darius Lakdawalla and Felicia Forma.  The full title is Does knowledge of patient non-compliance change prescribing behavior in the real world? A claims-based analysis of patients with serious mental illness.  The abstract is below, but do read the whole thing…