Meeting: Tues Thurs 12.10 - 1.30 pm MDSC
C 180 Note: In Medical Sciences Building IC (a long
way from MU)
Office Hours: Tuesday
Wednesday 2.00-3.30 p.m.
Chuan He firstname.lastname@example.org Office hours: SSH 0118 Thursday 10am-noon
Hang Zhou hanzhou @ucdavis.edu Office hours: SSH 0138 Monday 5-6pm Tuesday 4-5pm
Hang Zhou A01: Wednesday 7.10 - 8.00 pm 93 Hutchison
Hang Zhou A02: Wednesday 7.10 - 8.00 pm 93 Hutchison
Chuan He A03: Wednesday 6.10 - 7.00 pm 2020 Scilab
Chuan He A04: Wednesday 6.10 - 7.00 pm 2020 Scilab
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 such as 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.
Most but not all students will have taken ECN 102 or its equivalent.
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, 2020 Scilab and the
Virtual Lab (after 2020 SciLab closes - http://virtuallab.ucdavis.edu/)
If you choose to purchase Stata go to http://www.stata.com/order/new/edu/gradplans/student-pricing/
To get started in Stata see http://cameron.econ.ucdavis.edu/stata/stata.html
There is a coursepack with lecture notes and readings.
Additional supplementary material will be posted at Smartsite.
Textbook: Recommended but not required
Jay Bhattacharya, Timothy Hyde and Peter Tu: Health Economics, First edition, Palgrave MacMillan, 2014.
Three copies of the textbook are on two-hour reserve in Shields
This is the second time I have used this book.
It has changed a bit the topics I teach and their order compared to 132 classes in 2014 and earlier.
Some past exams and solutions are at
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 13
Midterm Exam2: 22.5% Thursday November 10
Assignments: 10% Due 12.10 p.m. (1) Thurs Sept 29, (2) Tues Oct 11, (3) Thurs Oct 27, (4) Tues Nov 8, (5) Tues Nov 22, (6) Thurs Dec 1.
Final Exam: 45% Tuesday December 6 10.30 a.m. - 12.30 p.m. Comprehensive.
Assignments 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.
Scores are posted at Smartsite. 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 SMARTSITE.
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 grading policy. For
upper division courses such as this the GPA is typically 2.7.