Health indicators in developing countries have shown significant improvement in the last 50 years. People are living longer, fewer children and their mothers die in childbirth, and many diseases have been controlled and some eliminated. However, the health status of individuals in these countries remains below its potential level, and many people lack access to suitable health care and health-promoting services. There is still much to be achieved in the promotion of health care and well-being of individuals in the developing world. In recent years, the efficient and equitable provision of health care has been at the center of public debate. Many developing countries have adopted health sector reforms and implemented new health policies and programs. This book provides an economic framework that will foster an understanding of the allocation of broadly defined health care resources and aid the design and analysis of policies that affect health care outcomes. It provides a modern treatment of health economics for developing as well as industrial countries. It addresses both positive and normative issues in the economics of health care and insurance.