Health Economics

  • The idea that goods (including inputs) do not come in chunks but are usable in infinitely small increments (or decrements). In economics this characteristic (which is useful in mathematical models) is often achieved, even when the good in question is manifestly lumpy in physical expression, by investigating rates of use or consumption (since time is infinitely divisible). In cost-effectiveness analysis the use of combinations of options (e.g. programmes of health care) in identifying those that have dominance usually requires programmes to be divisible.