Throughout the summer of 2017, Republicans couldn’t help but listlessly reiterate a single phrase: “repeal and replace”. From televised appearances to town halls and meet-and-greets, they attempted to move forward a vision of healthcare that excluded Obamacare’s mandate of universal coverage. Despite only a 24% approval rating of their legislation, the Better Care Reconciliation Act, they proceeded relentlessly, making their legislation’s collapse in July all the more painful. As President Trump attempts to revive such efforts through executive action, these words have begun to re-emerge into the political mainstream. Yet, for all of the Republicans’ talk on Obamacare’s role within the American welfare system, rarely does one hear of its impacts on the healthcare industry beyond the individual consumer’s immediate circumstances. Underneath partisan polemics, Obamacare has attempted to restructure the market as a whole through a payment plan known as value-based healthcare (VBHC). On its surface, it appears to be a rather simple idea. Currently, the healthcare industry operates under a fee-for-service framework in which consumers pay individually for each medical service received, such as an MRI. Under a value-based approach, health care providers are paid “for the value of care they deliver”. Intuitively, this sounds like an easy and agreeable approach to policy—after all, does value not speak for itself? It appeared so intuitive to Michael Katz, a contributor
Early this Monday, behavioral economist Richard Thaler of the University of Chicago was awarded the Nobel Prize in Economics. According to the announcement of Royal Swedish Academy of Sciences, Thaler “incorporated psychologically realistic assumptions into analyses of economic decision-making”. Put in layman’s terms, Professor Thaler won the award by studying people’s rationale for making poor choices. He is the most pioneering behavioral economist to delve closely into human psychology and understand humans as they really are. “In order to do good economics, you have to keep in mind that people are human,” said Professor Thaler after winning the prize. In fact, his decade-long observation of human behavior led him to conclude that humans are rationally unpredictable. This remarkable discovery directly challenged the fundamental assumption of neoclassical economics -- that all humans are always rational actors. It all started in 1976, when Richard Thaler attended an economics
https://issuu.com/columbiaeconreview/docs/cer_spring_2017 The Spring 2017 Issue has arrived! Click the link above to learn more about the bitcoin volatility, macroeconomic effects of corporate tax policies, and Federal Reserve regulations.
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The Columbia Economics Review invites teams of 1 - 4 undergraduates to participate in its fifth annual Competitive Climate environmental policy competition. Cash prizes of $600, $300 and $150 will be awarded to the 1st-, 2nd- and 3rd- place finishers respectively, thanks to the generous support of the Columbia Economics Department. The winning presentations will also be recognized by the The Earth Institute and will be featured in the Spring 2017 edition of the Columbia Economics Review and on the Columbia Economics Department website. Prompt On June 1, 2017 President Trump announced