HISTORY OF

HEALTH
ECONOMICS
Alimondo, Lyra Sheriejoy
Dayag, Mary Ashley
Pacia, Dea
Paguigan, Fransilyn
 WHAT IS HEALTH?
ACCORDING TO WHO...
“ H E A L T H I S A S T A T E O F C O M P L E TE P HYS IC A L , S O C IA L A N D
M E N T A L W E L L - B E IN G A N D N O T M E R E L Y THE A B S E N C E O F
D I S E A S E O R I N F IR M IT Y . T H E E N J O YM E N T O F THE HIG HE S T
A T T A I N A B L E S T A N D A R D O F HE A L TH IS O N E O F THE
F U N D A M E N T A L R IG H T O F E V E R Y HU M A N B E IN G , W ITHO U T
D I S T I N C T I O N O F R A C E , R E L IG IO N , P O L ITIC A L B E L IE FS O R
E C O N O M I C A N D S O C IA L C O N D IT IO N S . ”
 WHAT IS HEALTH
ECONOMICS?

•HEALTH ECONOMI CS I S AN APPLI ED FI ELD OF STUDY THAT ALLOWS

FOR THE SYSTEMATI C AND RI GOROUS EXAMI NATI ON OF THE
PROBLEMS FACED I N PROMOTI NG HEALTH FOR ALL. BY APPLYI NG
ECONOMI C THEORI ES OF CONSUMER, PRODUCER AND SOCI AL CHOI CE,
HEALTH ECONOMI CS AI MS TO UNDERSTAND THE BEHAVI OR OF
I NDI VI DUALS, HEALTH CARE PROVI DERS, PUBLI C AND PRI VATE
ORGANI ZATI ONS, AND GOVERNMENTS I N DECI SI ON-MAKI NG.
Historical Development of
Economics
A. STONE AGE

B. AGRICULTURAL AGE

C. INDUSTRIAL AGE

D. INFORMATION AGE
 STONE AGE
YEAR: 5 MILLIONS- 10,000 B.C
POPULATION: 8- 400 M
LIFE EXPECTANCY: 25 YEARS
ECONOMY: HUNTER- GATHERER
DISTRIBUTION OF INCOME: HIGHLY UNEQUAL
MEDICAL CARE: WITCH/ SHAMAN
 STONE AGE

◦ BEGAN WITH THE EMERGENCE

OF THE FIRST HOMINIDS IN
AFRICA ABOUT 5 MILLION YEARS
AGO.

◦ PEOPLE LIVED IN SMALL BANDS

AS A HUNTER-GATHERERS, WITH
SIMPLE FAMILY/TRIBE, SOCIAL
STRUCTURE AND LITTLE CAPITAL
TO IMPROVE PRODUCTIVITY.
shaman
◦FOR STONE AGE HUNTER-GATHERERS
EVERYONE LIVED PRETTY MUCH
EQUALLY AT A SUBSISTENCE LEVEL.

◦EXCHANGE BETWEEN GROUPS WAS

RARE SO THERE WERE NO ORGANIZED
TRADING SYSTEM
◦VIOLENT DEATH AND
STARVATION IN THE WINTER
WERE CONSTANT THREAT

◦REMAINING TRIBES RELIED TO

STONE AGE “TECHNOLOGY”
THAT ONLY 2 TO 4 HOURS PER
DAY IS REQUIRED TO OBTAIN
FOOD AND REPAIR SIMPLE
SHELTERS.
◦MUCH OF THE REST OF THEIR TIME
WAS TAKEN UP BY PURSUITS SUCH
AS SOCIALIZING, SINGING
AND ART.

◦POPULATION GROWTH OCCURRED

PRIMARILY BY EXPANSION TO NEW
TERRITORY
◦EVOLUTION OF TECHNOLOGY
(BOWS, ARROWS AND FLINT
KNIVES) MEANT BETTER
EXPLOITATION  OF THE EXISTING
FOOD SUPPLY, NOT INCREASED
PRODUCTIVITY.

◦HOMO SAPIENS DISPLACED

HOMO-ERECTUS BECAUSE THEY ARE
MORE EFFICIENT AT HUNTING AND
KILLING, GATHERING AND STORING
FOOD AND BUILDING SHELTER.
◦THE RISING POPULATION
PRESSURE IN LONG SETTLED LANDS
OVERFILLED WITH PEOPLE MAY HAVE
CONTRIBUTED IN THE DEVELOPMENT
OF ANIMAL HUSBANDRY AND PLANT
CULTIVATION TO FEED THE EXCESS
POPULATION INITIATING THE
AGRICULTURAL AGE.
 AGRICULTURAL AGE

YEAR: 4,000 B.C – 12 A.D

Thu
POPULATION: Beginnings to 4M
LIFE EXPECTANCY: 24 years
ECONOMY: Farming and harvesting
DISTRIBUTION OF INCOME: roughly equal
MEDICAL CARE: Healer/priest
 AGRICULTURAL AGE

◦THE FIRST AGRICULTURAL REVOLUTION,

ALSO KNOWN AS THE NEOLITHIC
REVOLUTION, IS THE TRANSFORMATION OF
HUMAN SOCIETIES FROM HUNTING AND
GATHERING TO FARMING.
 AGRICULTURAL AGE
◦POPULATION GROWTH ACCELERATED WITH THE
DEVELOPMENT OF AGRICULTURE, BUT ONLY SLOWLY
AT FIRST.

◦AGRICULTURE APPEARS TO HAVE ORIGINATED AT

AROUND 10,000 B.C. TO 7000 B.C. IN THE RIVER
VALLEYS OF TIGRIS, THE EUPHRATES AND NILE AND
SUBSEQUENTLY DEVELOPED IN CHINA AND PERUVIAN
HIGHLANDS.
 ◦ PEOPLE BEGAN TO SETTLE
PERMANENTLY IN ONE PLACE.

◦ IRRIGATIONCANALS WERE
DUG AND ROADS WERE BUILT.

◦ THE PRODUCTIVITY INCREASES THAT MADE

AGRICULTURE A STABLE WAY OF LIFE.
 ◦ AGRICULTURAL MEANT
GREATER RELIANCE ON JUST
ONE OR A FEW CROPS SO
THERE WERE LESS DIVERSITY IN
FOOD STUFFS AND NUTRIENTS,
REDUCING HEALTH.

◦CULTIVATION OF A SINGLE FOOD ALSO EXPOSED THE

POPULATION OF A VILLAGE TO A CATASTROPHIC DECLINES
AS DROUGHT OR INFESTATION CAUSED CROP FAILURE.
ALTHOUGH THE POPULATION GREW LARGER, LIFE
EXPECTANCY DECLINED
 INVESTMENT AND TRADE
◦ FARMING TAKES INVESTMENT.
◦ MANY FARM INVESTMENTS SUCH AS BUILDING A
ROAD OR A LARGE CORAL WERE COLLECTIVE,
BENEFITING THE ENTIRE VILLAGE. THE RETURNS ON
INVESTMENT BECAME LARGER WHEN MORE PEOPLE
WERE INVOLVED.
◦ TOWNS AND CITIES WERE  BUILT.
◦ TRADE BETWEEN REGION BECAME A REGULAR PART
OF ECONOMIC ACTIVITY.
 THE CITIES GREW AND THE POPULATION SPLIT INTO 2 CLASSES:
THE PEASANTS AND RULERS

PEASANTS RULERS
ARE THOSE WHO CONTROLS THE
WORKED IN THE LAND WEALTH.
AND CONTINUED TO LIVE
AT SUBSISTENCE LEVEL

•TAXES WERE COLLECTED AND DIRECTED TOWARD

APPROPRIATE PUBLIC WORKS AND SERVICES TO
MAINTAIN PROGRESS.
 THE RISE OF ECONOMICS
ONLY AFTER EXCHANGE BECAME
STANDARDIZED THROUGH THE USE
OF MONEY COULD REGULARITIES
BE OBSERVED AND STATISTICAL
ANALYSIS BE PERFORMED.
 INDUSTRIAL AGE
YEAR: 1800 A.D - 1975
POPULATION: 950M- 2.5 BILLION
LIFE EXPECTANCY: 35 YEARS
ECONOMY: MANUFACTURING
DISTRIBUTION OF INCOME:  MIXED
MEDICAL CARE: EMPIRIST
INDUSTRIAL AGE
◦ LIFE WAS DIFFICULT
AT THE START OF
INDUSTRIAL
REVOLUTION AND OFTEN
GOT WORSE THOSE
WHO MOVED INTO CITIES
TO WORK IN FACTORIES.

◦ AS THE INDUSTRIAL
REVOLUTION TOOK HOLD
PRODUCTIVITY
INCREASES CAUSED THE
AVERAGE
PERSON THE STANDARD
OF LIVING TO IMPROVE.
 DEMOGRAPHIC TRANSITION
◦The process of economic development is
linked to a dramatic change in national population known as
demographic transition.

◦When societies are in the agricultural age many children

die before reaching adulthood. High rates of mortality are
matched with high rates of fertility so the total number of
people are stable or just slowly increasing.
 DEMOGRAPHIC CHANGE, INCOME
DISTRIBUTION, AND RISE OF MIDDLE
CLASSES
◦The bulk of the population has to move into cities.
◦Building factories and inventing new technologies required
decentralize entrepreneur who acted as managers on their own.

◦People who leave the land are no longer the control of the lord
and they enter into wage labor contract with factories.

◦The deficit that allows starvation to remain a threat to people’s

health is not a lack of knowledge machinery or money for

investments but a lack of economic organization.

 INFORMATION
AGE
YEAR: 1975- present
POPULATION: up to 20 billion
LIFE EXPECTANCY: 80 years
ECONOMY:  service
DISTRIBUTION OF INCOME: not yet clear
MEDICAL CARE: scientifically trained physicians
◦ The information age is marked by the
appearance of the television and the
computer.
◦ The labor force is concentrated in
services rather than
agriculture or
manufacturing.
◦Atinformation
the heart oftechnology.
this age ofWechange
are is
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midst
isgreat of an information
everytechnological
bit as profound revolution
as the two that
past—the agriculturalrevolutions
and of the
industrial
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sector Information
revenues are technology
estimated to
account
GDP, and or
405 to 15
percentpercent
of U.S.of the U.S.
industry
capital spending
information technology.today is for
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