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Abstract: This paper contributes to the growing literature on the relationship between business cycles and mental health. It is one of the first applications in the economics literature to incorporate data on web searches from Google Insights for Search, and these unique data allow the opportunity to estimate the association between weekly unemployment insurance (UI) claims, in addition to monthly unemployment rates, and search indexes for “depression” and “anxiety”. Results from state fixed effects models yield (1) a positive relationship between the unemployment rate and the depression search index and (2) a negative relationship between initial UI claims on the one hand and the depression and anxiety search indexes on the other. A lag analysis also shows that an extended period of higher levels of continued UI claims is associated with a higher depression search index. [Copyright &y& Elsevier]

Abstract: This rejoinder demonstrates that the arguments made in AT (2006) are not robust and the case against non-monotonic HRSWF and their empirics remain overwhelming. [Copyright &y& Elsevier]

Abstract: In a recent paper in this journal Abasolo and Tsuchiya [Abasolo, I., Tsuchiya, A., 2004. Exploring social welfare functions and violation of monotonicity: an example from inequalities in health. Journal of Health Economics 23, 313–329] have strongly argued for the use of a non-monotonic health related social welfare function. This note discusses both the limitations of the measure proposed by Abasolo and Tsuchiya [Abasolo, I., Tsuchiya, A., 2004. Exploring social welfare functions and violation of monotonicity: an example from inequalities in health. Journal of Health Economics 23, 313–329] and the problems associated with their empirics. We are able to show how non-monotonicity may lead to paradoxical results and policies. Further we examine the empirics of Abasolo and Tsuchiya [Abasolo, I., Tsuchiya, A., 2004. Exploring social welfare functions and violation of monotonicity: an example from inequalities in health. Journal of Health Economics 23, 313–329] and provide an alternative explanation to the observed patterns in the data that do not violate monotonicity. Finally we briefly mention why the Atkinson-Sen framework may be more appropriate as a way forward. [Copyright &y& Elsevier]

Abstract: The hospital sector in the Province of Ontario has recently completed a large scale restructuring marked by wide ranging hospital closures, mergers and program transfers. Given a generally inconclusive economics literature, regulators used an accounting, as opposed to an economic, approach when predicting gains to consolidations. This paper uses an economic cost function to examine economies of scale and scope in the years preceding restructuring, where there was little doubt that economies were possible. Issues relating to output aggregation, functional form, and scale and scope testing are addressed and an equilibrium cost function is derived from an estimated short run function to measure the cost concepts of interest. Using index and direct approaches, we examine a variety of potential reconfigurations and conclude that there were indeed large scale unexploited gains to strategic consolidation in the hospital sector. Furthermore, these gains may not have been detected using standard approaches in the literature. [Copyright &y& Elsevier]

Adaptation behaviour and different scales of reference can bias self-assessments of well-being by individuals. In this paper, we analyse the impact of these biases on a subjective measure of the quality of health and on the QALY weights derived from this health measure. It is found that the scale of reference of the subjective health measure changes with age. Accounting for adaptation and scale of reference bias lowers most of the QALY weights for health problems and disabilities. [ABSTRACT FROM AUTHOR]

A competitive market for individual health insurance tends to risk-adjusted premiums. Premium rate restrictions are often considered a tool to increase access to coverage for high-risk individuals in such a market. However, such regulation induces selection which may have several adverse effects. As an alternative approach we consider risk-adjusted premium subsidies. Empirical results of simulated premium models and subsidy formulae are presented. It is shown that sufficiently adjusted subsidies eliminate the need for premium rate restrictions and consequently avoid their adverse effects. Therefore, the subsidy approach is the preferred strategy to increase access to coverage for high-risk individuals. [ABSTRACT FROM AUTHOR]

The analytic innovation is treating life's end as uncertain, and life expectancy as partly the product of individuals' efforts to self-protect against mortality and morbidity risks. The demand for self-protection is modeled in a stochastic, life-cycle framework under alternative insurance options. The model helps explain the trend and systematic diversity in life expectancies across different population groups, as well as the wide variability in reported "value of life saving" estimates. The analysis yields a closed-form solution for individuals' value of life saving that is estimable empirically. It reflects the impacts of specific personal characteristics and alternative insurance options on both life expectancy and its valuation. [ABSTRACT FROM AUTHOR]

The relationship between social capital and health has received extensive attention in fields such as public health, medicine, epidemiology, gerontology and other health-related disciplines. In contrast, the economics literature on this subject is relatively small. To address this research gap, we investigate the cross-disciplinary empirical literature using meta-analysis. We analyze 12,778 estimates from 470 studies. Our analysis finds that social capital is significantly related to a variety of positive health outcomes. However, the effect sizes are consistently very small. This finding is robust across different types of social capital (e.g., cognitive, structural, bonding, bridging, linking), and for many different measures of health outcomes (e.g., mortality, disease/illnesses, depression). The small effects that we estimate cast doubt on recent initiatives to promote health through social capital such as those by the WHO, the OECD, and US Healthy People 2020. [ABSTRACT FROM AUTHOR]

I look at three debates in the health economics literature in the context of cost-effectiveness analysis (CEA): 1) inclusion of future costs, 2) discounting, and 3) consistency with a welfare-economic perspective. These debates thus far have been studied in isolation leading to confusion and lingering questions. I look at these three debates holistically and present a welfare theoretic model that is consistent with the practice of CEA and can help inform all of these three debates. It shows rationales for the recommendations of the Second Panel and clarifies some nuanced implications for the practice of CEA when taking a societal perspective in the context of distributional CEA and multi-sectorial budgets. [ABSTRACT FROM AUTHOR]