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Working paper

Allocating Vote: Health - 'Needs Assessment' and an Economics-Based Approach (WP 00/04)

Issue date: 
Wednesday, 1 March 2000
Status: 
Current
View point: 
Document Date: 
Publication category: 
JEL classification: 
I10 - Health: General
Fiscal year: 
1999/00

Abstract

This paper critiques 'needs assessment' as a basis for allocating public funding of health and disability services and discusses an alternative economics-based  approach. In essence, the former approach ignores the effects on health outcomes of health care spending at the margin while the latter focuses explicitly on these considerations. A simple diagrammatic model is introduced that illustrates at a conceptual level the (micro)economic constraints and choices available to policy-makers. Finally, some practical steps and unresolved issues in implementing the economics approach are considered.

Last updated: 
Wednesday, 24 October 2007