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Economics and health promotion

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Abstract

Health promotion activities consume a growing proportion of health sector spending in most developed countries. Yet, there is still considerable debate in the non-economic literature about exactly what health promotion constitutes and precisely how its role is to be conceived. This paper provides one economic answer to such questions. It sets out an argument that health promotion may be viewed, through the lens of traditional welfare economics, as a response to problems of market failure. A Grossman-type health investment model is invoked to analyse individual deviations from equilibrium and the possible instruments and targets of health promotion policy. The paper concludes by suggesting some of the alternative conceptual approaches that might be brought to bear, as well as some ideas for empirical research.

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Acknowledgements

The author gratefully acknowledges Dr. Darrel Doessel’s helpful suggestions on an early draft of this paper and the helpful comments of two anonymous referees. The contributions from participants at a seminar delivered at the Centre for Health Economics Research and Evaluation (CHERE), are also gratefully acknowledged. Any errors that remain are solely the author’s responsibility.

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Authors and Affiliations

  1. Centre of National Research on Disability and Rehabilitation Medicine, The University of Queensland, Mayne Medical School, Herston Road, Q 4006, Herston, Australia

    Luke B. Connelly

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  1. Luke B. Connelly
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Correspondence to Luke B. Connelly.

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Connelly, L.B. Economics and health promotion. Eur J Health Econom 5, 236–242 (2004). https://doi.org/10.1007/s10198-004-0229-2

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