PUBHLTH 122 Lecture 5: 1/20/17 Lecture Notes

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Direct effect of health on utility: what is giving us utility and what makes us happy is being healthy. It is not a straight line because the marginal increase is not the same. A (cid:373)o(cid:374)th later, a rich uncle died and left you 5 million dollars. However, the first million dollars made you much happier than the second 5 million. Health production: (cid:862)good(cid:863) goods, healthy food, a gym membership, a good mattress, (cid:862)bad(cid:863) goods, drugs, alcohol, red meat, participating in these bad goods may be social, lack of information, etc, medical care. Actual causes of deaths in the us: all those deaths are from things that are associated with behavior, sexual behavior, fire arms, etc. A tale of two states: utah vs. nevada, same: both in the same region of the country, same medical system, different: nevada has las vegas so very risk behavior and utah has a lot of.

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