An essential assumption required to implement the difference-in-differences
methodology. The outcome being studied must exhibit the same pretreatment trend
in the two comparison groups.
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Parallel trends
A good or service that is difficult to limit to a specific group of consumers. In other
words, if the item is available to anyone, it becomes available to everyone.
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Nonexcludable good
,As part of an experiment, the group that receives the standard treatment, a placebo,
or no treatment at all.
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Control group
An index that assigns weights to various medical services used to determine the
relative fees assigned to them.
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Relative-value scale
A market equilibrium in which the marginal benefit received from every unit of output
is greater than or equal to the marginal cost of producing each unit. The social
optimum is that output at which the marginal benefit of the last unit produced is equal
to its marginal cost.
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Optimal output level
A paradox in game theory where players acting in their own self-interest choose their
dominant strategies and do not achieve the optimal outcome. In such cases,
cooperation, not competition, will result in a more profitable outcome.
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, Prisoner’s dilemma
A situation that emerges when all players in a noncooperative game choose their
dominant strategy and have nothing to gain (and can only lose) by changing from
their initial strategies.
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Nash equilibrium
A way to depict the relationship between the inputs in a production process and the
resulting output.
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Production function
A situation in which a market fails to produce the socially optimal level of output.
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Market failure
A state in which multiple outcomes are possible but the likelihood of any one
outcome is not known.
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Uncertainty
Total spending may rise if providers intensify services and create new technology for
the uncontrolled sector.
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Suppose you are a consultant advising the U.S. government on reducing
national health care spending. Assuming that providers will accommodate
patient desires, what advice could you offer concerning the
implementation of a price ceiling?
A health insurance arrangement where the individual, or agent of the individual, pays
a set premium to a third party (an insurance company, managed care organization, or
the government), which in turn pays for health care services.
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Third-party payers
A value used to compare the difference in the average outcome of an intervention
between members of the treatment group and the control group.
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methodology. The outcome being studied must exhibit the same pretreatment trend
in the two comparison groups.
Give this one a try later!
Parallel trends
A good or service that is difficult to limit to a specific group of consumers. In other
words, if the item is available to anyone, it becomes available to everyone.
Give this one a try later!
Nonexcludable good
,As part of an experiment, the group that receives the standard treatment, a placebo,
or no treatment at all.
Give this one a try later!
Control group
An index that assigns weights to various medical services used to determine the
relative fees assigned to them.
Give this one a try later!
Relative-value scale
A market equilibrium in which the marginal benefit received from every unit of output
is greater than or equal to the marginal cost of producing each unit. The social
optimum is that output at which the marginal benefit of the last unit produced is equal
to its marginal cost.
Give this one a try later!
Optimal output level
A paradox in game theory where players acting in their own self-interest choose their
dominant strategies and do not achieve the optimal outcome. In such cases,
cooperation, not competition, will result in a more profitable outcome.
Give this one a try later!
, Prisoner’s dilemma
A situation that emerges when all players in a noncooperative game choose their
dominant strategy and have nothing to gain (and can only lose) by changing from
their initial strategies.
Give this one a try later!
Nash equilibrium
A way to depict the relationship between the inputs in a production process and the
resulting output.
Give this one a try later!
Production function
A situation in which a market fails to produce the socially optimal level of output.
Give this one a try later!
Market failure
A state in which multiple outcomes are possible but the likelihood of any one
outcome is not known.
, Give this one a try later!
Uncertainty
Total spending may rise if providers intensify services and create new technology for
the uncontrolled sector.
Give this one a try later!
Suppose you are a consultant advising the U.S. government on reducing
national health care spending. Assuming that providers will accommodate
patient desires, what advice could you offer concerning the
implementation of a price ceiling?
A health insurance arrangement where the individual, or agent of the individual, pays
a set premium to a third party (an insurance company, managed care organization, or
the government), which in turn pays for health care services.
Give this one a try later!
Third-party payers
A value used to compare the difference in the average outcome of an intervention
between members of the treatment group and the control group.
Give this one a try later!
