PeruGloria enhiesta en milenios de historia…

Health Economics Problem Help!?

older people living in Boston, MA are 50% more visits to hospital of elderly people living in New Haven, CT, however, their health outcomes, based on rates age-specific mortality, appear to be identical. [Suppose older people in Boston are so healthy as the elderly in New Haven] My question is: Draw a production function of health. [Be sure to label the shaft and put both in Boston and New Haven in the chart]: to add Lima Peru, in graph [You may assume that they have limited access to] the hospital.

I think it is a health production possibility frontier that you are asking. You can not really draw a production function without knowing what the function. Its two axes are hospital visits and health outcomes. Let's say you use the health outcomes for the X axis and hospital visits for the Y axis Then your point of Boston and New Haven will the same value of X and Y value of Boston will be 50% more than in New Haven. For example, whether New Haven was X = 2 Y = 2, then Boston would be X = 2 Y = 3. To Lima I assuming that the lower the health outcomes as well. So Lima will be closer to the origin. So one possibility would be for all New Haven X = 4 Y = 4, Boston 4 x = Y = 6, Lima x = 1 Y = 1. That is one possibility.

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