Question

As mentioned at the beginning of the Chapter 2 (Santerre and Neun), the life expectancy rate in Russia fell significantly from 1989 through 1994. Use health production theory to explain what would happen to the relationship between good health and medical care in Russia if alcohol consumption diminished and the market economy strengthened. Provide a graph to illustrate your explanation.

Answer 1

Health is a very vital organ in every individual's lives and needs to be taken care of at all costs. However, it needs to be acknowledged that health is not a competitive aspect and is very costly to maintain as well as attain. Health is equally a durable good that many people require and can be placed in the group of human needs. This is the case since health can similarly be seen as a durable good fit for consumption since we people require to be healthy as a utility which makes it possible for us to operate in the day to day settings. In the case of Russia, if alcohol consumption reduces and the market economy strengthened, many people would have stronger immune systems that would be able to sustain them through any form of illnesses since their bodies and methods would not have been made defective by alcohol. As for medical care, it might turn out to be stronger which would make it cheaper to access medical care at all times. Therefore, the relationship between good health and medical care in Russia would improve thanks to the reduction in the consumption of alcohol and improvement in the economic muscle. As presented below, a decrease in alcohol consumption leads to improved health care.