Category Archives: Health

The Gains from Reducing Waiting Times

There is an accompanying letter A Strategy for Dealing with Excessive Waiting Times.

Keywords: Health;

This note has a simple purpose: to demonstrate the gains from reducing waiting times are somewhat larger than they might at first seem: an economic evaluation of the benefits reducing waiting times is likely to suggest there are very high returns. Essentially this arises because while a shortening of waiting times may appear superficially to benefit just a few people – the numbers in the backlog which are treated – all the subsequent patients are benefited by the shortening of the waiting times. Thus there is a spectacular multiplier from reducing waiting times which makes the gains for the outlay to reduce the backlog far larger than they at first seem.

Culture Matters

Don Brash says, “I can’t think of anything in health which is specifically Maori.” So why treat Maori differently?

Listener: 20 March, 2004.

Keywords: Health; Maori;

Sadly, the proportion of Maori who smoke, and as a consequence suffer the diseases from smoking and die early, is higher than that of Pakeha. Moreover, although there has been some success from the campaign to reduce smoking, it seems to have had little impact on Maori rates. So it makes sense to have a specifically Maori anti-smoking campaign, administered by Maori. One of its successes has been that most marae now ban smoking. No Pakeha-dominated organisation could have achieved such an outcome.

Report on the Social Costs Of Alcohol Abuse Workshop:

Université de Neuchâtel, Suisse, October 24-25th, 2003.

Keywords: Health;

The conference was centred around the launching of a study commissioned by the Swiss Federal Office of Public Health to assess the costs in Switzerland of alcohol misuse, prepared by a team from the Economics Department of the Université de Neuchâtel, led by Professor Claude Jeanrenaud. Additionally, a number of international experts were invited to give papers on broader issues. The report International Guidelines for Estimating the Costs of Substance Abuse (2ed), written by some of these experts and just published by the World Health Organisation was, in effect, also launched. This report highlights and reflects upon some of the papers presented at the conference.

The Economic Regulation Of Alcohol Consumption in New Zealand

Conference on ‘The Social Cost of Alcohol Abuse’, IRER – University of Neuchatel, Switzerland, 24-25 October, 2003

Keywords: Health;

Abstract

While New Zealand has some measurement of the social costs of alcohol misuse, which the paper reports, the interest in the country, and this paper, has been the shift to implementing policies whose focus is to minimise harm from misuse.

The paper traverses the policy environment from the initial revenue-raising role of the excise duty in 1840. As the frontier society moved to a settled society, policy from the 1890s moved to restricting the consumption of alcohol, with revenue remaining the main fiscal concern. However, in 1989 a new direction was undertaken in which aimed to minimise restrictions on low and zero harm alcohol consumption, and eliminate as far as was practical harm arising from misuse. Over the next 14 years various measures were taken culminating in the latest tax package of May 2003.

The paper traces through these changes. It argues that the policy transformation is not complete, and also discusses some of the inherent tensions in the new approach. In particular the shift from restriction to a liberal regime which treated liquor as a largely normal consumption good, with targeting on harm minimisation, resulted in easing of prohibitions on advertising of liquor.

But the paper also discusses the limitations of the economic approach, for it is not possible to use the policy instruments to target precisely on harm reduction without also limiting some low and zero harm consumption. This emphasises the need for non-economic policy instruments, most pertinently those which change attitudes to alcohol consumption where there remains a ‘frontier’ spirit.

The Analysis Of Costs and Benefits Of Gambling

‘It is a capital mistake to theorise before one has data’ Sherlock Holmes.

Keywords: Health;

Introduction

There as been various calls for a ‘cost benefit analysis’ of gambling in New Zealand. The expression ‘cost-benefit analysis’ (CBA) has a rigorous meaning in economics, and while there is no need for economics to insist that their meaning of the terms should be universally applied, it is helpful to recognise that the phrase is being used as a short hand for ‘an analysis of the costs and benefits’. Thus the CBA ends up with a single number – a total quantum of which summarises all the costs and benefits in an economy. But even were that quantum zero – so the costs and benefits netted out – there would still be considerable interest in the individual costs and benefits and their incidence. So until there is a consensus to the contrary, I propose to interpret the expression ‘cost benefit analysis’ to be synonymous with ‘the analysis of costs and benefits’ rather than economist’s technical term which in this text I shall refer to as ‘CBA’. I use the expression ‘cost benefit analysis’ to denote both.

Well-health and the Future Of the Pharmacist

Paper to the Unichem-Life Pharmacy Conference, Rotorua, 31 August 2003.

Keywords: Health;

You might expect an economist to focus on the state of public spending on health. Certainly were I the minister of finance I would. Indeed in a recent speech Michael Cullen expressed some dismay because since 1996 we have been increasing health spending faster than GDP and yet the problem of inadequate health funding appears unresolved.

The Cost Of Getting Drunk

Submitted as a feature to a national newspaper in May 2003, but it has not been used.

Keywords: Health; Regulation & Taxation;

Suppose you wanted to get drunk. How much would it cost? Perhaps six standard drinks would be more than enough – less if you were a woman. That is 90mls of absolute alcohol (ethanol). A bottle of the cheapest plonk provides 90mls of ethanol for about $6.50. You can get as drunk on beer for as little as $4.50. Some alcopops (Flavoured Alcoholic Beverages or Ready-to-Drinks) are as cheap. Spirits? Specials come at about $4.50 too.

High Spirits: Can We Spend and Tax Our Way to Healthier Drinking?

Listener 28 December, 2002.

Keywords: Health; Regulation & Taxation;

The etching ‘Gin Lane’ by William Hogarth (1697-1764) shows an inebriated woman, ulcers on her legs from under-nourishment, her baby falling from her arms. On the steps below is the skeleton of a man – her fate too. Behind is commerce: the gin shop, the pawn shop and a funeral parlour. Above the arch beside her is written ‘drunk a penny, dead drunk tuppence, straw for free’: there was a kind of host responsibility even in 1750.

The Economic and Health Status Of Households Project (Index)

Keywords: Distributional Economics; Health; Statistics; Social Policy

This is a project by Suzie Ballatyne and myself based on the Household Survey, which enabled us to look at some of the relationships between health and economic status.

Executive Summary

A preliminary account of the research program is
Economic Status and Health Status Project

Two papers which report some of the findings are
Validation and the Health and Household Economy Project
and
Who Goes to the Doctor?

The final report, The Economic and Health Status of Households is available on request. Its Executive Summary is on this website, and so is Chapter 6,
Choosing Household Equivalence Indexes

Index of Distributional Economics
Index of Household Equivalence Scales

Taxing Harm: Modernising Alcohol Excise Duties

Alcohol ‘is an article of human consumption which has a legitimate use accompanied by dangerous possibilities’ The Report of the Royal Commission on Licensing 1946

This is the executive summary of a report commissioned by the Alcohol Advisory Council: The views in this report are the author’s and may not be those of ALAC. The full report is available on The ALAC website

Validation and the Health and Household Economy Project

Paper to the Wellington Health Economists Group, Thursday 29 November, 2002.(1)

Keywords: Distributional Economics; Health; History of Ideas, Methodology & Philosophy; Statistics;

Introduction.

This is a brief summary of a 100 plus page report, The Economic and Health Status of Households,(2) prepared by Suzie Ballantyne and myself. The data base was the Household Economic Survey (HES). For the three year period covering 1994/5-1996/7 the HES included questions on the respondents’ recent utilisation of health services together with as a subjective assessment of each’s health status, as well as socioeconomic variables such as income and expenditure and personal characteristics.

Health Evaluation: Index

Theory

Economics in Healthcare Sector (June 2000).
International Guidelines for Estimating the Costs of Substance Abuse (2 Ed) (August 2001).

Examples

Prostate Economics (February 1993).
The Social Costs of Tobacco Use and Alcohol Misuse (April 1997).
Up in Smoke, Down the Drain: How Tobacco and Alcohol Abuse Cost Us $39b (June 1997).
Who Should Be Treated? Interferon-ß for Multiple Sclerosis (June 1999).
Desperate for Funds: Treating Multiple Sclerosis Raises Questions (November 1999).
Estimating the Economic Costs of Alcohol Misuse (March 2000).
Pain and Health Economics (June 2001).
Injecting Drug Use and the Projected Costs of Hepatitis C (September 2002).
Well-health and the Future of the Pharmacist (August 2003).
The Analysis of Costs and Benefits of Gambling (September 2003).
Evaluating A Trans-Tasman Agency to Regulate Therapeutic Products (December 2003)

Health Reforms: Index

Books
The Commercialisation of New Zealand 1997
The Whimpering of the State: Policy After MMP (Chapters 10-11) 1999.

Critiques
The New Zealand Health Reforms in Context (Chapter 9 & Appendix) June 2002.

The Managerial Revolution
Systemic Failure (December 1995)
Out of Tune: Even the Officials Admit the Health Reforms Were Fatally Flawed. (December 1997)
Money for Jams: the Government Response to Roading Reforms is Commercialisation (January 1998)
Two Styles of Management (July 1999)
The Cult of the Manager: Those Who Can, Do; Those Who Cant, Become Managers (February 2000)

Details
It’s in the Blood (December 1992)
Health Disservice (April 1997)
The Seven Percent Solution: A Background to the Proposed Health Referendum (January 1998)
The Hospital Balance Sheet Crisis (July 1999)
Funding Public Health Care: How and How Much? (March 2002)
Well-health and the Future of the Pharmacist (August 2003)

Tobacco Issues: Index

The Social Costs of Tobacco Use
Up in Smoke (March 1998)
The Social Costs of Tobacco Use and Alcohol Misuse (April 1997)
Up in Smoke, Down the Drain: How Tobacco Use and Alcohol Abuse Cost Us $39b (June 1997)
Economy of Substance: What We Can and Can’t Measure. (April 2001)
International Guidelines for Estimating the Costs of Substance Abuse: (2 ed) (August 2001)

The Regulation of Tobacco Use
Economic Instruments for the Regulation of Licit Drugs (November 1991)
The Economic Regulation of Tobacco Consumption in New Zealand (February 1998)
Eliminating the Tobacco Epidemic the New Zealand Experience (March 2000)

Social and History
The Gulf Between East and West (April 2000)

Injecting Drug Use and the Projected Costs Of Hepatitis C

Research Report Commissioned by NZ Drug Foundation: Released 8 September 2002

Keywords Health

Executive Summary [1]

The hepatitis C virus (HCV) usually causes chronic liver disease and other morbidities in most of those infected, and death in a minority of cases. The most common means of transmission today is from injecting drug use (IDU) through the sharing needles or other injecting equipment.

The New Zealand Health Reforms in Context

Published in Applied Health Economics and Health Policy. Final version of the article.

Keywords: Governance; Health; Political Economy and History

Abstract: The New Zealand health sector reforms of the 1990s have to be seen in the context of the long term development of the New Zealand health system. The evolutionary change between 1938 and 1990 was abruptly replaced by the revolutionary policy of commercialisation from 1991 to 1993. …

Does Professionalism Matter? (NZIPA Paper)

Paper for the AGM of the New Zealand Institute of Public Administration, 27 June 2002.

Keywords: Governance; Health

Graham Scott’s Public Sector Management in New Zealand includes a half-hearted account of the views expressed in my The Whimpering of the State: Policy Under MMP in which he says ‘Easton makes the extraordinary claim that reformers ignored, or sought to undermine, the personal responsibility and professionalism of the core public sector.’ I am not sure I went that far, but I did report Alan Schick’s concern that there appeared to be an unaddressed tension between the reform’s managerialism with its emphasis on accountability, and professionalism which emphasises responsibility.

Does Professionalism Matter? in Health and Education It Still May

Listener April 20, 2002.

Keywords Education; Governance; Health; Labour Studies

In Graham Scott’s Business Roundtable published Public Sector Management in New Zealand”, the ex-Secretary of the Treasury provides an account of the late 1980s public management reforms with which he was closely involved. The book includes a few pages on critics of the reforms, including a half-hearted account of my views in The Whimpering of the State (and these columns). Scott writes, ‘Easton makes the extraordinary claim that reformers ignored, or sought to undermine, the personal responsibility and professionalism of the core public sector.’ I am not sure I went that far, but I did report American expert Alan Schick’s concern that there appeared to be an unaddressed tension between the reform’s managerialism with its emphasis on accountability, and professionalism which emphasises responsibility. Curiously (I will not write ‘extraordinarily’), Scott’s book does not provide much evidence that professionalism is a central concern, for its few mentions are desultory. There is more concern about ‘professional capture’, the danger that professionals will administer the system in their interests rather than the wider public good. (The issue echoes the corporate management/shareholder tension I wrote about in my last column Guard Dogs That Fail to Bark.)