I. BASIC ECONOMIC TOOLS. 1. Introduction. 2. Microeconomic Tools for Health Economics. 3. Statistical Tools for Health Economics. II. SUPPLY AND DEMAND. 4. The Production of Health. 5. Demand for Health Capital. 6. Consumer Choice and Demand. III. INFORMATION. 7. Asymmetric Information and Agency. 8. Imperfect Agency and Supplier-Induced Demand. 9. Health, Health Care, and Advertising. 10. Physician Uncertainty and Small Area Variations. IV. INSURANCE AND ORGANIZATION OF HEALTH PROVIDERS. 11. Insurance. 12. Managed Care and Health Maintenance Organizations (HMOs). V. TECHNOLOGY. 13. The Production and Cost of Health Care. 14. Technology. VI. LABOR. 15. Labor Markets and Professional Training. 16. The Training and Practice of Physicians. VII. HOSPITALS AND NURSING HOMES. 17. Hospitals and Long-Term Care. 18. The Role of Nonprofit Firms. VIII. SOCIAL INSURANCE AND HEALTH SYSTEM REFORM. 19. Government Intervention in Health Care Markets and an Introduction to Regulation. 20. Equity, Efficiency, and Need. 21. Social Insurance. 22. Comparative Health Care Systems. 23. Health System Reform. IX. POLICY ISSUES AND ANALYSES. 24. Cost-Benefit Analysis and Applications to Health Care. 25. Economics of Mental Health and Substance Abuse. Glossary. References. Index.