Er:La Crosse vs.Miami Health Production Function(HPF)plots relationship between expenditures and maximal level of obtainable health HPF increases with health expenditures HPF has diminishing returns to health care spending Whether Miami's higher expenditures reflects wasteful spending depends on whether Miami and La Crosse share the same HPF Bhattacharya,Hyde and Tu-HealthEconomicsBhattacharya, Hyde and Tu – Health Economics Ex: La Crosse vs. Miami  Health Production Function (HPF) plots relationship between expenditures and maximal level of obtainable health ◼ HPF increases with health expenditures ◼ HPF has diminishing returns to health care spending  Whether Miami’s higher expenditures reflects wasteful spending depends on whether Miami and La Crosse share the same HPF