Meeting: Tues Thurs 10.30 - 11.50 am
Office Hours: Monday
1.30-3.00 p.m. (This is a change effective
Wednesday 2.00-3.30 p.m.
firstname.lastname@example.org Office hours: Tuesday
4-6 pm in room SSH 0118
Ethan Krohn email@example.com Office hours: Tuesday 2-4 pm in room SSH 0116
Chuan He A01: Wednesday 5.10 - 6.00 pm 93 Hutchison
Chuan He A02: Wednesday 6.10 - 7.00 pm 93 Hutchison
Ethan Krohn A03: Wednesday 9.00 - 9.50 am 93 Hutchison
Ethan Krohn A04: Wednesday 10.00 - 10.50 am 93 Hutchison
The course goals are:
(1) Provide a detailed description of the institutional features of the health care market and current trends in this rapidly changing field;
(2) Demonstrate the use and usefulness of analyzing the health care market using economic analysis, particularly microeconomics, and some statistical/mathematical analysis.
Compared to other areas of economics, health economics is complicated by a lack of information (about what health services the consumer needs), great uncertainty (hence insurance) and payment through third-parties (insurance companies) rather than direct payment by the consumer.
(3) Analyze health data using regression methods and the statistical program Stata.
Economics 100 (intermediate microeconomics) or ARE 100A or consent of instructor.
Mathematics 16A-B: These are a pre-requisite for Economics 100.
An upper division regression class: one of Economics 102, Economics 140, ARE 106, Statistics 108 or consent of instructor.
STATA for regression:
Part of the course entails analyzing health-related data using regression methods with the statistical package STATA.
The discussion sections are in university computer labs and the first discussion section will be on getting started in STATA.
Stata is installed in 93 Hutchison, 2060 Scilab
and the Virtual Lab (after 2060 SciLab closes - see http://virtuallab.ucdavis.edu)
To see whether 93 Hutchison and 2060 SciLab are available see http://computerrooms.ucdavis.edu/available/.
If you choose to purchase Stata go to http://www.stata.com/order/new/edu/gradplans/student-pricing/
For this course and other economics classes Stata/IC is more than adequate and costs $45 (6 months), $89 (1 year); $198 (permanent copy).
To install Stata after it is purchased: (1) Choose the correct operating system (e.g. Windows or Mac); (2) Choose the correct version of Stata - the student price version is Stata/IC; (3) When you first run Stata after installation it will ask for an "authorization code". These codes are given in a pdf attachment you will received in the email from Stata following purchase (some are lengthy and it is easiest to cut and paste them in).
To get started in Stata see http://cameron.econ.ucdavis.edu/stata/stata.html
Lecture Slides are posted at the course Canvas site (http://canvas.ucdavis.edu) under Files / Lecture Slides.
The UCSD Intermediate Microeconomics videos on topics such as externalities are at the course Canvas site under Assignments / UCSD Intermediate Micro Handbook.
but not required
Jay Bhattacharya, Timothy Hyde and Peter Tu: Health Economics, First edition, Palgrave MacMillan, 2014.
Copies of the textbook are on two-hour reserve in Shields
This is the third time I have used this book.
Some past exams and solutions are at http://cameron.econ.ucdavis.edu/e132/e132.html
A. Introduction, Overview of U.S. Health
Market, getting started in Stata
Class 1. Bhattacharya Chapter 1 + Supplemental Notes.
B. Health Insurance in the U.S.: Facts,
definitions and Rand experiment
Classes 2-3. Bhattacharya Ch.18 + Supplemental Notes.
C. Economics of Health Insurance:
Risk pooling, risk aversion, moral hazard
Classes 4-6. Bhattacharya Chs.7, 8, 9.11-9.12 + Supplemental Notes.
***** Class 7 Midterm Exam 1 *****
C. Economics of Health Insurance: moral
hazard, adverse selection, other countries
Class 8-9. Bhattacharya Chs.11 + Supplemental Notes.
D. Economic Evaluation of Health
Services: cost-benefit and cost-effectiveness analysis
Classes 10-11. Bhattacharya Ch.14 + Supplemental Notes.
E. Demand for Health Care: Grossman model
Classes 12. Bhattacharya Chs.2-3 + Supplemental Notes
F. Suppliers: Physicians, Hospitals
Classes 13-14. Bhattacharya Chs. 5, 6 + Supplemental Notes.
22.5% Thursday October 19
Midterm Exam2: 22.5% Thursday November 16
Assignments: 10% Due 10.30 a.m. (1) Thurs Oct 5, (2) Tues Oct 17, (3) Thurs Nov 2, (4) Tues Nov 14, (5) Thurs Nov 30, (6) Thurs Dec 7.
Final Exam: 45% Friday December 15 1.00 p.m. - 3.00 p.m. Comprehensive.
Assignments are posted on Canvas under Files
Homeworks will be graded satisfactory (2%) or unsatisfactory (0%). Full solutions will be distributed. Satisfactory means a serious attempt to answer at least 80% of the questions. The lowest of the scores on the six assignments is dropped, i.e. no penalty for not handing in one assignment if the other five are graded satisfactory. No credit for late assignments. Academic honesty is required - see below.
Exams are closed book with a mixture of
short answer (about two-thirds) and multiple choice (about
The final exam is comprehensive: about 60% on material up to the second midterm and 40% on the remainder.
FOR EXAMS YOU NEED TO BRING STUDENT PHOTO ID. I WILL DECIDE WHERE TO SEAT YOU. YOU CANNOT USE YOUR OWN CALCULATOR OR SMARTPHONE - CALCULATORS WILL BE PROVIDED.
Scores are posted at Canvas. You have one
week from when work is first returned in class to raise any
questions about grading.
AFTER THE FINAL EXAM IS TAKEN NO CHANGES WILL BE MADE FOR ANY REASON TO ANY SCORES RECORDED ON CANVAS.
Course grade is determined by the total
score, with weights given above. The assignments are graded on a
generous scale (satisfactory or unsatisfactory), so most
students will get full credit on the assignment portion.
Therefore for most students the course score is determined by
scores on the assignments and exams. To indicate your progress I
give a grade on each midterm. But the final grade is determined
by summing the exam and assignment scores (and not by averaging
I follow the Department of Economics grading policy
of a class average GPA of 2.7.
e.g. 20% A's. 50% B's, 15% C's, 10% D's and 5% F's. http://economics.ucdavis.edu/undergrad-program/advising/courses/grading-policy