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Assignment:
Below you will be given the abstract from "Technological innovation and inequality in health," by Sherry Glied and Andrea Lleras-Muney.
"The effect of education on health has been increasing over the past several decades. We hypothesize that this increasing disparity is related to health-related technical progress: more-educated people are the first to take advantage of technological advances that improve health. We test this hypothesis using data on disease-specific mortality rates for 1980 and 1990, and cancer registry data for 1973-1993. We estimate education gradients in mortality using compulsory schooling as a measure of education. We then relate these gradients to two measures of health-related innovation: the number of active drug ingredients available to treat a disease, and the rate of change in mortality from that disease. We find that more-educated individuals have a greater survival advantage in those diseases for which there has been more health-related technological progress."
How might you use the marginal efficiency of the health capital curve to explain the hypothesis that more educated individuals will take advantage of technological advances to improve health?
a) More education may shift your MEC curve to the left
b) The model cannot be used to explain this hypothesis
c) More education may shift your MEC curve to the right
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