Health and Medicine

FSI’s researchers assess health and medicine through the lenses of economics, nutrition and politics. They’re studying and influencing public health policies of local and national governments and the roles that corporations and nongovernmental organizations play in providing health care around the world. Scholars look at how governance affects citizens’ health, how children’s health care access affects the aging process and how to improve children’s health in Guatemala and rural China. They want to know what it will take for people to cook more safely and breathe more easily in developing countries.

FSI professors investigate how lifestyles affect health. What good does gardening do for older Americans? What are the benefits of eating organic food or growing genetically modified rice in China? They study cost-effectiveness by examining programs like those aimed at preventing the spread of tuberculosis in Russian prisons. Policies that impact obesity and undernutrition are examined; as are the public health implications of limiting salt in processed foods and the role of smoking among men who work in Chinese factories. FSI health research looks at sweeping domestic policies like the Affordable Care Act and the role of foreign aid in affecting the price of HIV drugs in Africa.

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This research studies the link between medical spending and health outcomes in South Korea, providing evidence on the productivity of medical spending over recent decades.

The author advocates for the Korean government to develop a “satellite account for health” to complement national income and product accounts. Current measures do not account for changing quality nor give providers any incentive for cost-effective substitution between forms of treatment for a given condition. 

By leveraging existing strengths of Korea’s National Health Insurance and health outcome data, Korea can develop an accurate measure of medical productivity and a more accurate measure of overall economic productivity, while becoming a global pioneer of “health satellite accounts” for overall populations. 

Such a productivity metric built on condition-specific net value can help Korea increase the “bang for the buck” from medical spending, mitigate wasteful spending, and promote high-value innovations for longer, healthier lives.

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Karen Eggleston
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We study two interventions in Beijing, China, that provide patients with information on antibiotic resistance via text message to discourage the overuse of antibiotics. The messages were sent once a month for five months. One intervention emphasizes the threat to the recipient’s own health and is found to have negligible effects. The other intervention, which highlights the overall threat to society, reduces antibiotics purchases by 17% in dosage without discouraging healthcare visits and other medicine purchases. The results demonstrate that prosocial messaging can have the potential to address public health issues that require collective action.

Keywords: Social-regarding message; Antibiotics; Field experiment

JEL codes: C93, D83, I12

Published: https://doi.org/10.1016/j.jdeveco.2023.103056

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Asia Health Policy Program working paper # 66

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Asia Health Policy Program working paper # 66
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Jianan Yang
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AHPP 3_9

Co-sponsored by Peking University Institute for Global Health and Development, and the Asia Health Policy Program

We study a commons problem in the context of the emergency ambulance service in Tokyo. Emergency ambulance service is free in Japan, and no one is excluded from using it. Because capacity is limited, individually rational ambulance use may delay the use by others, lowering the chance of survival. The Fire Department urges the proper use of ambulances to save lives that can be saved, but little is known about the extent of the negative consumption externality. In this paper, we first estimate how one's ambulance use affects others with respect to arrival delays and survival rates. Then, we analyze the impact of potential remedies that alter non-excludability and rivalry in ambulance use.

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Toshiaki Iizuka 030923

Toshiaki Iizuka is a Professor at Graduate School of Economics, the University of Tokyo. His research interests are in the field of health economics and industrial organization. He has written articles on incentive and information in the healthcare markets, which appeared in leading economics journals, including American Economic Review, RAND Journal of Economics, and American Economic Journal: Applied Economics. Dr. Iizuka currently serves as Associate Editor of Journal of Health Economics and a member of the Central Social Insurance Medical Council, a council of the Japanese Health Ministry that determines provider payments and drug prices. He holds a PhD in Economics from the University of California, Los Angeles.

Jianan Yang

Via Zoom webinar http://bit.ly/3IrBNPJ

616 Serra StreetEncina Hall E301Stanford, CA94305-6055
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Toshiaki Iizuka is Professor at Graduate School of Public Policy and Graduate School of Economics, the University of Tokyo. Before joining the University of Tokyo in 2010, he taught at Vanderbilt University (2001-2005), Aoyama Gakuin University (2005-2009), and Keio University (2009-2010). He served as Dean of Graduate School of Public Policy, the University of Tokyo, between 2016 and 2018. He is a recipient of Abe Fellowship (2018-2019). 

His research interests are in the field of health economics and health policy. He has written a number of articles on incentive and information in the health care markets. His research articles have appeared in leading professional journals, including American Economic Review, RAND Journal of Economics, Journal of Health Economics, and Health Affairs, among others. Dr. Iizuka holds a PhD in Economics from the University of California, Los Angeles, an MIA from Columbia University, and an ME and BE from the University of Tokyo.
Visiting Scholar, Asia Health Policy Program at APARC
Toshiaki Iizuka Professor, Graduate School of Economics, the University of Tokyo.
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Event Flyer for "Global Health Economics, China, and the Science of Healthcare Delivery in the Digital Age' with photo of Sean Sylvia

Co-sponsored by Peking University Institute for Global Health and Development, and the Asia Health Policy Program

Digitization in healthcare coupled with advances in artificial intelligence and other so-called "4th Industrial Revolution" technologies are enabling a radical shift in how healthcare is delivered. Few places are attempting to integrate these into healthcare as rapidly as China. This talk will discuss China's comparative advantage in healthcare digitization and lay out a research agenda for the economics of digital health. While these technologies bring potential to improve access to high- quality care and lower costs, unintended consequences and effects on healthcare markets are underexplored. Evidence on these issues is needed to inform policy and better harness these technologies for population health. Specific applications will be drawn from ongoing research in China and elsewhere.

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Sylvia, Sean 021623

Sean Sylvia is an Assistant Professor of health economics at UNC. His primary research interest is in the delivery of healthcare in China and other middle-income countries. Working with multidisciplinary teams of collaborators, he conducts large-scale population-based surveys and randomized trials to develop and test new approaches to provide healthcare to the poor and marginalized. His recent work focuses on the use of information technology to expand access to quality healthcare.

Jianan Yang
Sean Sylvia Assistant Professor of Health Economics, Gillings School of Global Public Health, University of North Carolina at Chapel Hill
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The Walter H. Shorenstein Asia-Pacific Research Center (APARC) is pleased to announce a suite of training, fellowship, and funding opportunities to support Stanford students interested in the area of contemporary Asia. APARC invites highly motivated and dedicated undergraduate- and graduate-level students to apply for these offerings:

APARC Summer 2023 Research Assistant Internships

APARC seeks current Stanford students to join our team as paid research assistant interns for the duration of the summer 2023 quarter. Research assistants work with assigned APARC faculty members on varied issues related to the politics, economies, populations, security, foreign policies, and international relations of the countries of the Asia-Pacific region. This summer's projects include:

  • The Biopolitics of Cigarette Smoking and Production
  • The Bureaucratic State: A Personnel Management Lens
  • China’s Largest Corporations
  • Healthy Aging in Asia
  • Hiding in Plain Sight: How China Became A Great Power
  • Nationalism and Racism in Asia
  • U.S. Rivals: Construct or Reality?  
     

All summer research assistant positions will be on campus for eight weeks. The hourly pay rate is $17.25 for undergraduate students, $25 for graduate students.

The deadline for submitting applications and letters of recommendation is March 1, 2023.

Please follow these application guidelines:

I. Prepare the following materials:


II. Fill out the online application form for summer 2023, including the above two attachments, and submit the complete form.

III. Arrange for a letter of recommendation from a faculty to be sent directly to Shorenstein APARC. Please note: the faculty members should email their letters directly to Kristen Lee at kllee@stanford.edu. We will consider only applications that include all supporting documents.

For more information and details about each summer research project, visit the Summer Research Assistant Internships Page >


APARC 2023-24 Predoctoral Fellowship

APARC supports Stanford Ph.D. candidates who specialize in contemporary Asia topics. The Center offers a stipend of $37,230 for the 2023-24 academic year, plus Stanford's Terminal Graduate Registration (TGR) fee for three quarters. We expect fellows to remain in residence at the Center throughout the year and to participate in Center activities.

Applications for the 2023-24 fellowship cycle of the APARC Predoctoral Fellowship are due March 1, 2023.

Please follow these application guidelines:

I. Prepare the following materials:

  • A current CV;
  • A cover letter including a brief description of your dissertation (up to 5 double-spaced pages);
  • A copy of your transcripts. Transcripts should cover all graduate work and include evidence of recently-completed work.

II. Fill out the following online application form, including the above three attachments, and submit the complete application form.

III. Arrange for two (2) letters of recommendation from members of your dissertation committee to be sent directly to Shorenstein APARC.  
Please note: the faculty/advisors should email their letters directly to Kristen Lee at kllee@stanford.edu.

We will consider only applications that include all supporting documents. The Center will give priority to candidates who are prepared to finish their degree by the end of the 2023-24 academic year.

For more information, visit the APARC Predoctoral Fellowship Page >


APARC Diversity Grant

APARC's diversity grant supports Stanford undergraduate and graduate students from underrepresented minorities who are interested in contemporary Asia. The Center will award a maximum of $10,000 per grant to support a wide range of research expenses.

The Center is reviewing grant applications on a rolling basis.  
To be considered for the grant, please follow these application guidelines:

I. Prepare the following materials:

  • A statement describing the proposed research activity or project (no more than three pages);
  • A current CV;
  • An itemized budget request explaining research expense needs.

II. Fill out the following online application form, including the above three attachments, and submit the complete application form.

III. Arrange for a letter of recommendation from a faculty to be sent directly to APARC.  

Please note: the faculty members should email their letters directly to Kristen Lee at kllee@stanford.edu.

For more information, visit the APARC Diversity Grant page >

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Stanford main quad at night and text calling for nominations for APARC's 2023 Shorenstein Journalism Award.
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Nominations Open for 2023 Shorenstein Journalism Award

Sponsored by Stanford University’s Shorenstein Asia-Pacific Research Center, the annual award recognizes outstanding journalists and journalism organizations for excellence in coverage of the Asia-Pacific region. News editors, publishers, scholars, and organizations focused on Asia research and analysis are invited to submit nominations for the 2023 award through February 15.
Nominations Open for 2023 Shorenstein Journalism Award
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Student Opportunities: Summer RAs, Predoc Fellows, Diversity Grant Funding
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To support Stanford students working in the area of contemporary Asia, the Shorenstein Asia-Pacific Center is offering research assistant positions for the duration of the 2023 summer quarter, a predoctoral fellowship for the duration of the 2023-24 academic year, and a Diversity Grant that funds research activities by students from underrepresented minorities.

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The combination of COVID-19 and global uncertainties — from wars, cost-of-living crises, high cross-national public debts, and impending global recession — creates new challenges for affordable access to new medicines around the world. Using insights from his research on price regulation, incentives for innovation, and universal health coverage in global bio-pharmaceutical markets, Chirantan Chatterjee will consider how the future may unravel for affordable access to new medicines in the Global North and South.

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Chirantan Chatterjee is an applied microeconomist and a Reader in the Economics of Innovation at the University of Sussex. He is also a Visiting Fellow at the Hoover Institution, Stanford University, and Visiting Faculty, IIM Ahmedabad, India. His research interests are in the economics of innovation, pharmaceutical economics, and global health. He has published in top peer-reviewed journals like Management Science, RAND Journal of Economics, Journal of Development Economics, Journal of Health Economics, Research Policy, Production and Operations Management, Journal of Business Ethics, Journal of Environmental Economics & Management and Social Science & Medicine among others. His new co-edited book on Covid-19 and Grand Challenges for Health, Innovation and Economy is forthcoming in 2023 with World Scientific. Chatterjee's research has in the past been supported by the NSF during his dissertation work at Carnegie Mellon University from where he obtained his PhD in 2011. His current research is supported by the Wellcome Trust India Alliance & Johns Hopkins Alliance for a Healthy World. Chatterjee has also consulted for the United Nations, World Bank, and the World Health Organization on Covid-19, Universal Health Coverage, and Incentives for Medical Innovation. View more on his personal website at www.chirantanchatterjee.com.

Jianan Yang

Via Zoom Webinar

Chirantan Chatterjee Reader in Economics of Innovation, Science Policy Research Unit, Business School, University of Sussex; Visiting Fellow Hoover Institution, Stanford University; Visiting Faculty, IIM Ahmedabad, India
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Register: bit.ly/3FTrJhg

Incentives for health behaviors are an increasingly important policy tool in both developed and developing countries, and there is widespread interest in improving their effectiveness. However, different contracts are likely to be more effective for different people. Mechanism design offers two strategies to improve contract effectiveness—tagging on observables (i.e., 3rd-degree price discrimination), and offering a menu of contract choices (i.e., 2nd-degree price discrimination)—but a key concern with both is that participants with private information might self-select into contracts that are favorable to the agent but less effective from the perspective of the principal. We adapt each of these strategies to customize incentive contracts for walking. Using a randomized controlled trial among more than 5,000 adults in urban India, we show that both mechanisms increase physical activity, leading to a 75% increase in steps walked relative to the effect of a one-size-fits-all benchmark. Moreover, we find that the concern that participants will self-select into less effective contracts is not only misplaced, but exactly backwards. Instead, a common force in health behavior settings—commitment motives—leads agents to prefer more effective contracts under both mechanisms. In particular, sophisticated time-inconsistent agents demand contracts that commit their future selves to walk more, bringing their preferences in partial alignment with the principal and improving the effectiveness of customization.

 

Ariel Zucker 111722Ariel Zucker is an assistant professor in the Department of Economics at UC Santa Cruz. Her research studies policies to improve health and environmental conditions among underserved communities worldwide. Many of her projects focus on countering behavioral biases in personal decision making. Prior to arriving in Santa Cruz, Dr. Zucker did a postdoc at UC Berkeley ARE, and earned her Ph.D. in economics from MIT.

Jianan Yang

Via Zoom Webinar.

Ariel Zucker Assistant Professor of Economics, University of California Santa Cruz
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Register: bit.ly/3UHwDTF

Co-sponsored by Peking University and the Asia Health Policy Program

Time cost of healthcare is important but is largely overlooked in the literature. This paper investigates how time cost affects the healthcare usage in both China and the US. Using the retirement age policy in both countries, we first employ a Regression Discontinuity Design (RDD) and show that the hospitalization rate persistently increases by 20-30 percent just after retirement age. The effects are larger and more significant among the people with higher time costs prior to retirement. Then, we use the school starting date and provide further significant evidence of the impact of time cost on hospitalization among the age-eligible children. These results underline the remarkable impact of time cost on healthcare usage and provide a more comprehensive picture of moral hazard in health insurance.

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Dr HUANG Wei is an Associate Professor at the National School of Development (NSD), Peking University. Previously, he was an assistant professor at Emory University and National University of Singapore. He received his Ph.D. in economics from Harvard in 2016. His research fields include public economics, labor economics, and health economics. His research work has been published in journals such as Review of Economic and Statistics, American Economic Journal: Applied Economics, Nature, Journal of Economic Perspectives, Journal of Development Economics, Journal of Labor Economics, etc. He is a co-editor for Economics of Transition.

Jianan Yang

Via Zoom Webinar.

Wei Huang Associate Professor, the National School of Development (NSD), Peking University
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Asia Health Policy Postdoctoral Fellow, 2022-23
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Jianan Yang joined the Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC) as the 2022-2023 Developing Asia Health Policy Postdoctoral Fellow. She recently obtained her Ph.D. in Economics at the University of California San Diego. She holds B.A. in Economics and Mathematics from the Renmin University of China. Her research lies in the intersection of development and health economics and revolves around what drives the sub-optimal healthcare-seeking behaviors in developing countries and how they can be improved by leveraging price or non-price mechanisms.

Yang views health as a fundamental part of human development. People in developing countries usually face additional barriers to accessing healthcare resources because of underqualified providers on the one side, lower income levels, insufficient insurance coverages, and a lack of information on the other side. Because markets in healthcare settings are usually characterized by imperfect competition and government regulations, Yang thinks it is important to evaluate the policies’ impacts on various aspects of the healthcare system. Through understanding the underlying constraints, we can think about how the policy can be designed more efficiently.

Yang’s dissertation studied how patients’ chronic condition drug utilization responds to price reductions in China. By documenting a larger increase in utilization and a meaningful reduction in underuse among the uninsured, the study suggests that the price elasticities would be higher in developing countries and there will be larger welfare benefits from such price reductions resulting from squeezing out the price markups of the pharmaceutical companies due to market power. The finding suggests that cost is a barrier to both drug take-up and adherence, especially among the lower-income population who meanwhile are more likely to not have insurance coverage.

At APARC, Yang further accessed the underlying factors affecting people’s healthcare-seeking behaviors including the role of cost, information, and behavioral bias. She also extended her research agenda to the other sectors of the healthcare system. 

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As healthcare costs for patients with non-communicable diseases such as diabetes have risen, governments and healthcare providers have sought creative measures to align financial incentives with better patient outcomes. One incentive payment system known as “pay-for-performance” (P4P), in which providers are beholden to metric-driven outcomes, represents a potential path forward for healthcare providers to improve healthcare processes, resulting in higher quality and better patient health outcomes. The evidence on the effectiveness of P4P programs, however, is mixed.

To address this uncertainty, a new study, published in The European Journal of Healthcare Economics, assesses the effectiveness, in monetary terms, of a P4P program for patients with diabetes at a hospital system in Taiwan. 

The study coauthors, including APARC’s Asia Health Policy Program Director and FSI Senior Fellow Karen Eggleston, employed new patient-level data on clinical indicators, utilization, and expenditures, combined with data from the national death registry, to better understand the costs and benefits of the P4P program. Their results show that Taiwan’s implementation of the P4P program for diabetic care yielded positive results in terms of net value, defined as the value of life years gained minus the cost of care.


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Assessing Net Value of Taiwan’s P4P

Taiwan’s Bureau of National Health Insurance (now National Health Insurance Administration) introduced P4P in 2001 and enhanced the program in 2006 with an incentive for pay-for-reporting of outcomes. Financial incentives were used to encourage continuity of care with metrics such as new patient enrollment, follow-up visits, and annual reports, each tied to a specific monetary value. The program’s features are common across P4P, so the study’s findings have implications in other settings that incorporate similar designs in their P4P programs.

The study compares two different groups of patients at a large regional hospital in Taiwan, one consisting of newly enrolled P4P patients and another using P4P patients who have been enrolled since the beginning of the program. The researchers leverage detailed clinical data not used in previous assessments of the P4P program to better identify both costs and longer-term clinical outcomes based on measured biomarkers and predicted mortality.

Using an economic cost-benefit analysis conducted from a budgetary perspective, the study is the first analysis of any P4P program that estimates changes in the quality-adjusted price index relative to usual care. The authors consider health benefits in terms of survival and predicted survival and convert them into monetary terms. This net value approach is especially useful for policymakers and healthcare administrators who implement value-based purchasing and monitor outcomes for any service delivery innovation over time.

“These encouraging findings of the positive value of quality improvement net of expenditures adds evidence to the literature that has found mixed results of P4P programs.”

The study finds that Taiwan’s P4P program provided a positive net value for payers and patients, ranging from $40,084 USD to $348,717 USD. These positive net value results are primarily derived from health outcomes as measured by lower mortality rates in the P4P versus non-P4P cohorts, across both newly enrolled and continuously enrolled groups of patients. According to the authors, “these encouraging findings of the positive value of quality improvement net of expenditures adds evidence to the literature that has found mixed results of P4P programs.” 

 This study develops a new model for assessing the net value of service delivery innovations like P4P programs that can be applied in other contexts globally, providing healthcare systems researchers with new tools to better understand an emergent option for incentivized care. With a more economically-translatable understanding of P4P programs, this research helps build the bridge between the oft-disparate worlds of healthcare and policy.

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Education Level Will Widen Disparity in Health Outcomes of the Future Elderly Population, New Study Projects

In the first study to compare the progression of educational disparities in disability across two rapidly aging Asian societies, APARC coauthors Cynthia Chen and Karen Eggleston project that from 2015 to 2050, elders with high educational attainment will have a lower prevalence of functional disability and chronic conditions compared to elderly with low educational attainment.
Education Level Will Widen Disparity in Health Outcomes of the Future Elderly Population, New Study Projects
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New Approaches to Aging: Understanding and Managing Society-Level Characteristics in Elderly Populations

Broadening the existing scholarship on aging and the needs of different societal groups, Cynthia Chen, Visiting Scholar at APARC’s Asia Health Policy Program, presents nuanced and comprehensive aging metrics that account for the critical factors that influence societal function.
New Approaches to Aging: Understanding and Managing Society-Level Characteristics in Elderly Populations
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Japanese Population Projected to Live Longer Without Dementia

A new microsimulation projects that over the next 20 years, Japanese people will live longer without dementia, but older women with a less than high school education will benefit less than men.
Japanese Population Projected to Live Longer Without Dementia
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In the first study to evaluate pay-for-performance implementation at a hospital system in Taiwan, APARC’s Asia Health Policy Program Director Karen Eggleston and co-authors reveal how incentive-based measures to ensure continuity and quality of care resulted in positive health outcomes.

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