weighing up the opportunity costs and benefits of alternative means to achieve
those objectives. Consequently, health economics can offer a useful, we argue
the most useful, perspective on health outcomes.
In this paper, the economics perspective on health outcomes is described. Once
economics is brought to bear on outcomes, it becomes clear that outcomes are
only one half of the framework. Resources and costs are relevant, too. In section
2, a simple generalised production model is described which is then extended to
illustrate the production of health. Subsequent sections deal with the relation
between inputs and outputs, the importance of costs, the production of health
rather than health care, and with outcomes other than improvements in health.
The paper has been written to inform the debate about the meaning and
importance of health outcomes. Economic jargon is kept to a minimum whilst
setting the concept of health outcomes firmly within an economic framework.
To this end, a number of technical points are explained in self contained notes.
These can be omitted without loss of continuity.