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In spite of the important role of income expectations in economics, economists know little about how people actually form these expectations. We use a unique data set that contains the explicit income expectations of medical students over a 25-year time period to examine how students form income expectations. We examine whether students condition their expectations on their own ability, contemporaneous physician income, and the ex post income of physicians in their medical school cohort. We then test whether a model that uses the students' explicit income expectations to predict their specialty choices has a better fit than a model that assumes income expectations are formed statically, and a model that bases income expectations on ex post income.

Economics, Medical. --- Medical economics. --- Specialism (Philosophy)

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W 74 Medical economics. Health care costs (General) --- W 74 Medical economics. Health care costs (General) --- W 74 Medical economics. Health care costs (General)

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W 74 Medical economics. Health care costs (General) --- W 74 Medical economics. Health care costs (General) --- W 74 Medical economics. Health care costs (General) --- Health Care Costs --- Health Care Costs --- Health Care Costs --- Longevity --- Longevity --- Longevity --- Aged --- Aged --- Aged

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Health services administration --- Paperwork (Office practice) --- Medical economics --- Small business --- Management. --- United States.

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The World Health Organization (WHO) presents the December 20, 2001 Commission on Macroeconomics and Health (CMH) report "Macroeconomics and Health: Investing in Health for Economic Development." The report is available in both PDF and HTML formats. The CMH emphasizes the importance of improving the health of the world's poor in order to improve the economic situation of all countries.

Medical economics. --- Poor --- World health. --- Health and hygiene. --- World Health Organization. Commission on Macroeconomics and Health. --- Developing countries --- Economic conditions.