Meeting: Tues Thurs 10.30 - 11.50 am
Zoom class (recording of the class will be posted after
Office Hours: Tuesday 12.30 - 1.30 pm Thursday 12.30 - 1.30 pm
Eunju Lee firstname.lastname@example.org
Office hours: Monday 10-11 am Wednesday 10-11 am
Kevin Dinh email@example.com Office hours: Tuesday 12-1 pm Wednesday 12-1 pm
A01: Wednesday 4.10 - 5.00 pm Eunju Lee
A02: Wednesday 5.10 - 6.00 pm Eunju Lee
A03: Wednesday 2.10 - 3.00 pm Kevin Dinh
A04: Wednesday 4.10 - 5.00 pm Kevin Dinh
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 or 100A or ARE 100A (intermediate microeconomics) or consent of instructor.
Mathematics 16A-B: These are a pre-requisite for Economics 100/100A.
Regression class (upper division): one of Economics 102, Economics 140, ARE 106, Statistics 108 or consent of instructor.
A. Introduction, Overview of U.S. Health
Market, getting started in Stata
Class 1. Supplemental Notes. (Bhattacharya Chapter 1)
B. Health Insurance in the U.S.: Facts,
definitions and Rand experiment
Classes 2-3. Supplemental Notes. (Bhattacharya Ch.18)
C. Economics of Health Insurance:
Risk pooling, risk aversion, moral hazard
Classes 4-7. Supplemental Notes. (Bhattacharya Chs.7, 8, 9.11-9.12)
***** Class 8 Midterm Exam 1 *****
C. Economics of Health Insurance: adverse
selection, other countries
Class 9. Supplemental Notes. (Bhattacharya Chs.11)
D. Economic Evaluation of Health
Services: cost-benefit and cost-effectiveness analysis
Classes 10-11. Supplemental Notes. (Bhattacharya Ch.14)
E. Demand for Health Care: Grossman model
Classes 12. Supplemental Notes. (Bhattacharya Chs.2-3)
Class 14. Supplemental Notes. (Bhattacharya Ch. 12)
***** Class 14 Second Midterm exam
F. Suppliers: Hospitals,
Class 15-16. Supplemental Notes. (Bhattacharya Ch. 12)
Class 20. Review of Course
During campus shutdown this Spring Stata is accessed via the Virtual
Lab. For instructions see http://virtuallab.ucdavis.edu
Also I have posted at canvas a 7 minute video under Files / Connect_virtual_lab_and_start_Stata.mp4
If you choose to purchase Stata go to https://www.stata.com/order/new/edu/gradplans/student-pricing/
For this course and other economics classes Stata/IC is more than adequate and costs $48 (6 months), $94 (1 year); $225 (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 codes 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
Zoom discussion sections will include going through Stata.
For a summary of the data methods we use see file tr132statistics.pdf at the Canvas site (under Files / Statistics for 132)COURSE GRADING
Midterm Exam 1:
20% 10.30 am Thursday April
22 Exam is given
as a Canvas Quiz
Midterm Exam 2: 20% 10.30 am Thursday May13 Exam is given as a Canvas Quiz
Assignments: 20% Due 10.00 a.m. Fridays April 9, 16, 30; May 7, 28; June 4.
Final Exam: 40% Thursday June 10 3.30 p.m. - 5.30 p.m. Comprehensive. Exam is given as a Canvas Quiz
Assignments are posted on Canvas under Files
/ Homeworks. They are to be turned in on Canvas by 10 am on
Doing the assignments is a valuable part of learning both health economics and data analysis using Stata.
Assignments will usually be graded satisfactory (4%) or unsatisfactory (0%). Satisfactory means a serious attempt to answer at least 80% of the questions. In some cases partial credit will be given.
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.
Assignments must be handed in on time, so solutions can be discussed in class and distributed in a timely manner. No credit for late assignments.
Exams are closed book with a mixture of
short answer (mostly) and multiple choice.
Some past exams are posted at http://cameron.econ.ucdavis.edu/e132/e132.html
Note that while similar material will be examined this time, the format will change somewhat as it is now online as a quiz.
The final exam is comprehensive: approximately 20% on material up to first midterm, 20% on material between first and second midterm, 45% after second midterm; and 15% on regression with Stata.
Scores are posted at Canvas. You have one week from when work is first returned in class (or in discussion section in the case of assignments), to raise any questions about grading.
Note that there is no automatic conversion
formula such as an 85 is a B. To let you know how you are
going on each exam I give the distribution of the scores for the
exam along with a "suggestive" grading curve. The course grade is based on the total course score and has a similar
distribution of A's, B's, etcetera.
Course grade is determined by the total
score, with weights given above. The assignments are graded on a
generous scale (satisfactory or unsatisfactory), so many
students will get full credit on the assignment portion.
Therefore for most students the course score is determined by
scores on the 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 the grades).