ABSTRACT

Why do economists work in health? The health sector is not usually the first place people associate with economists. It is not supposed to be about money, profit, production and markets. Should it not be about medicine, nursing, caring and the difference between life and death? Surely, an economist has no wisdom to bring to bear here? Such views were virtually universal until quite recently but they demonstrate a limited understanding of the role and content of economics. In principle economists are concerned with better choices and in particular making the best use of existing resources and growth in the availability of resources. As economists started to work on problems in the health sector, the new discipline of health economics emerged. Many of the concerns in health economics are also those of other health scientists – how can we improve survival, quality of life and fairness in access to services? What economics brings is a different framework for analysing such questions. We think this framework offers important and useful insights.