Principles in Health Economics and Policy is a concise introduction to health economics and its application to health policy. It introduces the subject of economics, explains the fundamental failures in the market for health care, and discusses the concepts of equity and fairness when applied to health and health care. The book takes a policy-oriented approach, emphasizing the application of economic analysis to universal health policy issues. It explores the key questions facing health policy-makers across the globe right now, such as: how should society intervene in the determinants that affect health? How should health care be financed? How should health care providers be paid? And, how should alternative health care programmes be evaluated when setting priorities? Exercises and suggested readings are included after each chapter.