Production+of+health

The marginal product is the change in total output associated with a one-unit change in the variable input. The marginal product can be expressed as **Y** = Δ**Y**/Δ**X** (the change of **Y**)/(the change of **X**). The marginal product is the slope of the total product curve.

=Total Product Curve=

The total product curve is upward sloping and indicates that as an individual consumes more medical care, overall health improves. The positive intercept term represents the individual's level of health when no medical care is consumed and is a function of other factors, such as lifestyle and the environment. The total product curve implies that an individual's level of health is positively related to the amount of medical care consumed. The curve reflects the law of diminishing marginal productivity. This law explains that health increases at a decreasing rate with respect to additional amounts of medical care, holding other inputs constant. The total product curve can be shifted upward with the development and application of new medical technology. There are many other ways, listed below, in which this curve can be shifted or rotated. A movement along the total product curve would illustrate the case in which the improvement in medical technology brings about an increase in the amount of medical care consumed, along with an improvement in health.

"Flat-of-the-curve" medicine refers to the small marginal impact of medical care services on the health status of adults. The typical adult consumes medical services at the point where the slope of the total product curve or marginal product of medicine is near zero.

=Major Determinants of Health=

Age and health are obviously related. As an individual ages, both health and the marginal product of health care are likely to fall. The rate at which health depreciates over the period is also likely to increase with age. This causes the total product curve to shift downward and flatten out. The decrease in the marginal product of medical care also causes the marginal product curve to shift to the left.

Lifestyle variables are also important to consider when determining health. Personal habits such as smoking, drinking, being sedentary, over- or under-weight, and improper diet are all detrimental to a person's health. Consider an over-weight individual. After this person practices proper habits of diet and exercise, physical conditioning will improve. As a result of this lifestyle change, the level of health and the marginal product of medical care should increase. This causes the total product curve to shift and rotate upward.

Improved socio-economic conditions cause the marginal product of medical care to increase also. Education is likely to make an individual a more efficient producer of health independently of the amount of medical care consumed; this causes the total product curve to shift upward. An educated individual understands the positive impact of a healthy diet. Lack of schooling and the existance of poverty are found to raise the neonatal mortality rate. Various government programs, such as Medicaid and Medicare, reduce prevalance of sickness. A higher socioeconomic status also plays a role in children's health. The health of te child is positively related to the education of the mother and father.

Income and health are complexly related. Income is likely to indirectly impact health through a number of ways. An increase in income provides the individual the means to consume more medical care. However, a higher income individual is more likely to be educated, pursue a healthier lifestyle, and live in a safe environment (all of which contribute to a safer environment and improved health). The absolute income hypothesis states that an individual's absolute income is positively related to health. The relative income or deprivation hypothesis suggests that an individual's income relative to some social group average impacts over-all health. The income inequality hypothesis states that the distribution of income directly impacts health. For example, those at the bottom of the income scale in the U.S. may become frustrated. Out of a sense of discouragement, these lower income people turn to smoking and drinking.

A person's physical environment is also likely to affect the total product curve. An asthmatic individual might move from Florida, with high humidity, to a community in Arizona. This change would cause the total product curve to shift and rotate upward. Environmental factors such as soot, smog, and other matter in the atmosphere may cause lung and heart disease in infants. Reductions in carbon monoxide outputs causes a reduction in infant mortality.

=Statistics=

Smoking: http://www.americanheart.org/presenter.jhtml?identifier=4559 Alchol: http://www.sadd.org/stats.htm Overweight: http://www.cdc.gov/nchs/fastats/overwt.htm

=References=

Case, Anne, and Christina Paxson. "Parental Behavior and Child Health." Health Affairs 21 (March/April 2002), pp. 164-78. Enthoven, Alain C. Health Plan. Reading, Mass: Addison-Wesley, 1980. Fuchs, Victor R., and Sarah Rosen Frank. "Air Pollution and medical Care Use by Older Americans: A Cross-Areas Analysis." Health Affairs 21 (November/December 2002), pp. 207-14. Lynch, John, et al. "Is Income A Determinant of Population Health? Part 1. A Systematic Review." Milbank Quarterly 82 (2004), pp. 5-99. Mosby Medical Encyclopedia, 2nd ed. New York: C.V. Mosby, 1992. Wagstaff, Adam, and Eddy van Doorslaer. "Income Inequality and Health: What Does the Literature Tell Us?" Annual Review of Public Heath 21 (2000). pp. 543-567.

=Multiple Choice Questions and Answers=

1. All of the following, EXCEPT which one, will rotate or shift the total product curve? a. Lifestyle b. Socio-economic conditions c. Age d. Income e. All of the above (ANSWER: E)

2. The total product curve is: a. Upward sloping b. Not necessary c. No reflection of the law of diminishing marginal productivity d. All of the above e. None of the above (ANSWER: A)

3. The major determinants of health are: a. lifestyle b. socio-economic considerations c. age d. income e. all of the above (ANSWER: E) 4.