Using Big Data to Estimate Consumer Surplus: The Case of Uber

September 29, 2016

Using almost 50 million individual-level observations and a regression discontinuity design, we estimate that in 2015 the UberX service generated about $2.9 billion in consumer surplus in the four U.S. cities included in our analysis. For each dollar spent by consumers, about $1.60 of consumer surplus is generated.

Source: Using Big Data to Estimate Consumer Surplus: The Case of Uber

Editor’s note: in pharmaceuticals, the ratio of consumer surplus to prices appears much higher: for drugs used to treat HIV/AIDS, Philipson and Jena (2006) find that individuals value these drugs at nearly 10–20 times their price.


U.S. Government Agencies Have Placed A Value On An Extra Year of Life (It’s Higher Than You Think)

September 29, 2016

looking at the significant rules issued by CMS and the FDA, the associated cost-benefit analyses used a median value of $293,000 and $300,000, respectively, for an incremental year of life.Thus, as life-saving cancer drug paradigms are developed, it would appear that costs of these drug combinations on the order of $200,000–$300,000 per life-year could be justified using health agencies’ own analyses.

Source: U.S. Government Agencies Have Placed A Value On An Extra Year of Life (It’s Higher Than You Think)


Current Exchange Difficulties Are Actually ObamaCare’s Fourth Death Spiral

September 29, 2016

Now, a nationwide exodus of insurers has left one third of counties, one in six residents and seven states with only one carrier. In Pinal County, Arizona, every insurer has exited the Exchange.

Source: Current Exchange Difficulties Are Actually ObamaCare’s Fourth Death Spiral


My Vision for Universal, Quality, Affordable Health Care — NEJM

September 28, 2016

The editors invited the Democratic and Republican presidential nominees, Hillary Clinton and Donald Trump, to answer the following question for Journal readers: What specific changes in policy do you support to improve access to care, improve quality of care, and control health care costs for our nation? Secretary Clinton responded. Mr. Trump did not respond.

Source: My Vision for Universal, Quality, Affordable Health Care — NEJM


Household Health Care Expenditures Up 57 Percent Over Past Decade – AAF

September 28, 2016

Total average annual household health care expenditures have increased 57 percent, from $2,766 to $4,342, over the last ten years. The rising cost of health insurance is responsible for most of this increase; households spent more than twice as much on health insurance in 2015 as they did in 2006.

Source: Household Health Care Expenditures Up 57 Percent Over Past Decade – AAF


American Public Health Association – The Current and Projected Taxpayer Shares of US Health Costs

September 28, 2016

Tax-funded health expenditures totaled $1.877 trillion in 2013 and are projected to increase to $3.642 trillion in 2024. Government’s share of overall health spending was 64.3% of national health expenditures in 2013 and will rise to 67.1% in 2024. Government health expenditures in the United States account for a larger share of gross domestic product (11.2% in 2013) than do total health expenditures in any other nation.

Source: American Public Health Association – The Current and Projected Taxpayer Shares of US Health Costs


House Passes Obamacare Mandate Exemption Bill | The Daily Caller

September 28, 2016

The White House threatened to veto a bill that passed the House Tuesday designed to protect individuals from being fined for not having insurance due to the collapse of their Obamacare co-op.

Source: House Passes Obamacare Mandate Exemption Bill | The Daily Caller