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Allocating Vote: Health — ‘Needs Assessment’ and an Economics-Based Approach

Author

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  • Nancy Devlin
  • Paul Hansen

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.

Suggested Citation

  • Nancy Devlin & Paul Hansen, 2000. "Allocating Vote: Health — ‘Needs Assessment’ and an Economics-Based Approach," Treasury Working Paper Series 00/04, New Zealand Treasury.
    • Handle: RePEc:nzt:nztwps:00/04
    as

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    File URL: https://treasury.govt.nz/sites/default/files/2007-10/twp00-04.pdf
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    References listed on IDEAS

    as
    1. Mooney, Gavin, 1998. ""Communitarian claims" as an ethical basis for allocating health care resources," Social Science & Medicine, Elsevier, vol. 47(9), pages 1171-1180, November.
    2. Alan Williams, 1997. "Intergenerational Equity: An Exploration of the ‘Fair Innings’ Argument," Health Economics, John Wiley & Sons, Ltd., vol. 6(2), pages 117-132, March.
    3. Alan Williams, 1999. "Calculating the global burden of disease: time for a strategic reappraisal?," Health Economics, John Wiley & Sons, Ltd., vol. 8(1), pages 1-8, February.
    4. Grossman, Michael, 1972. "On the Concept of Health Capital and the Demand for Health," Journal of Political Economy, University of Chicago Press, vol. 80(2), pages 223-255, March-Apr.
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