This book discusses the following: Microeconomic tools for health economics; Statistical tools for health economics; The production of health; Demand for health capital; Consumer choice and demand; Asymmetric information and agency; Imperfect agency and supplier-induced demand; Health, health care, and advertising; Physician uncertainty and small area variations; Insurance; Managed care and Health Maintenance Organizations (HMOs); The production and cost of health care; Technology; Labor markets and professional training; The training and practice of physicians; Hospitals and long-term care; The role of nonprofit firms; Government interventions in health care markets and an introduction to regulation; Equity, efficiency, and need; Social insurance; Comparative health care systems; Health system reform; Cost-benefit analysis and applications to health care; Economics of mental health and substance abuse.