Economics 156/256 –Economics of Health and Medical Care

Syllabus

 

Stanford University

Fall 2004

 

 

Professor: Jay Bhattacharya

Office Phone: (650) 736-0404

e-mail: jay@stanford.edu

website: <http://courseworks.stanford.edu>

Meeting Times: MW 9-10:50am

Meeting Place:  LaneHall 203 (AKA 200-203)

Office: Encina Commons, Room 186

Office Hours: Monday 11:30am-1:15pm, or by appointment

 

Course Summary

This course is an introduction to the field of health economics.  Health economics is an active field of microeconomics with a large and growing literature.  In the past decade, some of the most controversial policies considered by state and federal governments have involved issues that have been analyzed by health economists.  This class will provide an introduction to the health care system in the U.S.  We will discuss some of the key concepts that health economists use to analyze health care markets.  Finally, we will apply these concepts to selected current issues in health policy.

 

Prerequisites

Students should have a firm grasp of microeconomics at the level of Intermediate Microeconomics.  Students should also be comfortable with basic concepts in statistics. Much of the literature in health economics requires that readers be conversant in the language of statistics and econometrics, so we will review these as necessary.

 

Grading

The grade will be based on a midterm (30%) and a final (40%).  In addition, there will be four problem sets that will count toward the grade in the class (30%).  Performance on the examinations will no doubt be affected by the students’ understanding of the material on the problem sets.  Problem sets will be due by 5pm in mailbox assigned to this course in the economics department. 

 

The material covered on the examinations will come from the lecture notes, problem sets and required reading.  If a student requests that some question on an examination be re-graded, I will review the entire examination.  There will be no make-up final, so please plan ahead.  This course will adhere to the rules described in the Economics Department Common Syllabus:

(http://www-econ.stanford.edu/academics/economics_department_course_management.pdf).

 

Reading Assignments

The text for the course is The Economics of Health and Health Care, 4th Edition by Folland, Goodman, and Stano (FGS).  All required and recommended readings will be available at the courseworks website for the class at http://courseworks.stanford.edu.


 


INTRODUCTION

 

 

 

 

 

1

Sept 27

The economic way of thinking about health care

 

Required readings:

 

Recommended readings:

  • FGS, Ch.2 (highly recommended if your recollection of intermediate microeconomics is aged).

 

 

 

 

 

 

THE PRODUCTION OF HEALTH

 

 

 

 

 

2

Sept 29

The demand for health care

 

Required readings:

  • FGS, Ch. 4-5, 8

 

Recommended readings:

 

 

3

Oct 4

 

Problem Set #1 handed out

 

Human capital and health

 

Required readings:

 

Recommended readings:

 

 


4

Oct 6

Technological change and the price of health care

 

Required readings:

 

Recommended readings:

 

5

Oct 11

 

Problem Set #1 due

 

Hospitals and the theory of non-profits

 

Required readings:

  • FGS, Ch. 13-14

 

Recommended readings:

 

 

6

Oct 13

 

 

Physicians

 

Required readings:

  • FGS, Ch. 10, 15

 

Recommended readings:

 

 

 

 

 

 

HEALTH INSURANCE

 

 

 

 

 

7

Oct 18

 

Problem Set #2 handed out

Risk aversion and health insurance

 

Required readings:

 

Recommended readings:

 

 

8

Oct 20

 

 

 

Informational asymmetries and classification risk (1)

 

Required readings:

 

 

9

Oct 25

 

 

Informational asymmetries and classification risk (2)

 

Required readings:

 

 

Recommended readings:

 

10

Oct 27

 

Problem Set #2 due

Empirical Examinations of Insurance Markets

 

Required readings:

 

Recommended readings:

11

Nov 1

Midterm

 

12

Nov 3

Employer provision of health insurance

 

Required readings:

 

Recommended readings:

 

13

Nov 8

 

Problem set #3 handed out

 

Managed care

 

Required readings:

 

 

Recommended readings:

 

14

Nov 10

Medicare and Medicaid

 

Required readings:

 

Recommended readings:

 

15

Nov 15

 

Problem Set #3 due;

 

Problem Set #4 handed out

 

Uninsurance: causes and consequences

 

Required readings:

 

Recommended readings:

 

 

 

 

TOPICS IN HEALTH ECONOMICS

 

 

 

16

Nov 17

The regulation of health care markets

 

Required readings:

  • FGS, Ch.17, 18, 19

 

Recommended readings:

 

17

Nov 22

Epidemiologic epidemiology

 

Required readings:

 

Recommended readings:

 

18

Nov 24

The behavioral economics of health

 

Required readings:

  • FGS, Ch. 22

 

Recommended readings:

 

19

Nov 29

 

Problem set #4 due

 

The demographics of health

 

Required readings:

 

Recommended readings:

 

20

Dec 9

Final –-  8:30am-11:30am