Meeting: Tues Thurs 9.00 - 10.20 am Chem
Office Hours: Monday
Wednesday 3.30-5.00 p.m.
firstname.lastname@example.org Office hours:
Wednesday 9 - 11 am in room SSH 0116
Joshua Grelewicz email@example.com Office hours: Tuesday 12-1 pm in room SSH 0118 and Wednesday 11am-noon in SSH 0116.
Camila Saez A01: Wednesday 12.10 - 1.00 pm 93 Hutchison
Camila Saez A02: Wednesday 1.10 - 2.00 pm 93 Hutchison
Joshua Grelewicz A03: Wednesday 2.10 - 3.00 pm 93 Hutchison
Joshua Grelewicz A04: Wednesday 3.10 - 4.00 pm 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 or 100A (intermediate microeconomics) or ARE 100A 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. 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 4-7. Bhattacharya Chs.7, 8, 9.11-9.12 + Supplemental Notes.
***** Class 8 Midterm Exam 1 *****
C. Economics of Health Insurance: moral
hazard, adverse selection, other countries
Class 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. Bhattacharya Chs. 5, 6 + Supplemental Notes.
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.
22.5% Thursday October 18
Midterm Exam2: 22.5% Thursday November 15
Assignments: 10% Due 9.00 a.m. Tues Oct 9, Tues Oct 16, Thurs Nov 1, Tues Nov 13, Thurs Nov 29, Thurs Dec 6.
Final Exam: 45% Tuesday December 11 8.00 a.m. - 10.00 a.m. Comprehensive.
Assignments are posted on Canvas under Files
Doing the assignments is a valuable part of learning both health economics and data analysis using Stata.
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. 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 (about two-thirds) and multiple choice (about
The final exam is comprehensive: about 40-50% on material up to the second midterm and 50-60% on the remainder.
FOR EXAMS YOU NEED TO BRING YOUR STUDENT PHOTO ID. I WILL DECIDE WHERE TO SEAT YOU. CALCULATORS WILL BE PROVIDED - you must not use your own calculator or smartphone.
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. Instead if 85 was the median
(middle) score among all students who took the class then you
would get the median grade which is most often C+/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.
But the course grade is based on a course curve.
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
Grading policy: To ensure fairness and consistency in
grading, the Department expects that the GPA in
all undergraduate economics courses will average 2.7. For example,
a distribution with 20% A's, 50% B's, 15% C's, 10% D's, and
5% F's could be consistent with an overall GPA of 2.7.