ECN 132 - Health Economics
Department of Economics
ECN 132 – Summer Session II 2021
ECN 132 - Health Economics
Monday, Tuesday, Wednesday: 6:10-7:50pm
Room: Online
Instructor Contact Information:
Name: Shahar Sansani
Email: [email protected]
Link for lecture: https://ucdavis.zoom.us/j/95955954628
Office Hours: Thursdays 9:30am-11:30am, and by appointment
Link for office hours: https://ucdavis.zoom.us/j/94896634870
Teaching Assistant (TA) Contact Information:
Section: A21: Thursday 2:10-3:50: and A23: Thursday 6:10-7:50
Name: Justin Ku
Email: [email protected]
Office Hours: Thursdays 4:00pm-6:00pm
Link for Section and Office Hours: https://ucdavis.zoom.us/j/6517640960
Course Description:
This course applies the tools and models from various economic disciplines such as labor economics, public economics, and behavioral economics to the study of the health care system. We will study the economics behind decisions made by consumers, insurance companies, health care providers, and the government, through various models and empirical studies. Special attention will be given to the rising cost of health care, the Affordable Care Act, and health disparities, in addition to the core topics of the demand for medical care, demand for insurance, and the different ways countries provide health care.
Learning Objectives:
● Understand everyday issues in health economics and how the market for health care operates
● Critically analyze models in health economics and apply these models to evaluate health behaviors
● Engage with ways in which empirical evidence is used to study topics in health economics
Course Prerequisites:
*ECN 100 or ECN 100A or ARE 100A, and
*ECN 102 or ECN 140 or ARE 106 or STA 108, and
*ECN 100B
*Or Consent of Instructor
(Highly) Recommended Course Text:
Bhattacharya, J., Hyde, T., & Tu, P. (2013). Health Economics. Macmillan International Higher Education. ISBN 978-1137029966
Online Outlines/Notes/Lectures:
The professor will regularly post lecture slides/notes online; these lecture slides/notes will be roughly followed in lectures. Note that former students have found that reviewing these lecture slides before class proves useful in following the lecture material.
*Lectures will also be recorded and available for students who miss a lecture and/or are in a time zone that makes regular class attendance challenging.
Course Homepage: canvas.ucdavis.edu
Additional Course Material:
*In addition to the textbook, other materials will be used to study the topics covered in class. Students are responsible for the material that we discuss in class from additional readings, audio, and video.
Grading:
Problem Sets/Homework (25%):
Four problem sets will be assigned throughout the summer session. Problem sets will be graded based on completeness and overall performance with three possible grades: 100%, 80%, or 50%. Failure to submit a problem set will result in a ‘0’ grade for that problem set. Note that problem sets are designed to assist you in keeping up with the material and identify topics that are not clear. You are strongly encouraged to complete all problem sets.
*Your lowest problem set grade will be dropped
Midterm (35%):
There will be one midterm over the course of the summer session. The tentative date for the midterm is August 23th. The topics to be covered for the midterm will be announced a week in advance.
Final (40%):
There will be a cumulative final exam on the last day of the summer session, Wednesday, September 8, 6:10-7:50pm.
*The midterm is taken during the class time and the final exam during the scheduled time. If you are in a different time zone, please plan in advance. These are the only times when attendance is required.
Note that failing to complete any of the above will result in a ‘0’ grade for that part. Extenuating circumstances with proof may be considered at the professor’s discretion for failing to complete any of the class requirements.
*Make sure to upload your problem set/exam to Canvas/Gradescope at least a few minutes before the deadline to make sure it is uploaded on time. If you are having issues uploading to Canvas/Gradescope you may email the problem set/exam to the instructor or your TA.
Additional Comments:
Code of Academic Conduct: There is a zero-tolerance policy for violations of the Code of Academic conduct. Students unfamiliar with the code are required to review it here. Violation of the Code of Academic Conduct will result in immediate referral to the Office of Student Support and Judicial Affairs.
Exams: Exams will be open-book, open-notes, and you may use material posted on Canvas. However, each student is still required to complete the exam on his/her own and all answers must be in a student’s own words. Any indication of answer-sharing or exams completed by a third-party will be immediately referred to the Office of Student Support and Judicial Affairs.
Special Needs: UC Davis is committed to educational equity in the academic setting, and in serving a diverse student body. I encourage all students who are interested in learning more about the Student Disability Center (SDC) to contact them directly at sdc.ucdavis.edu, [email protected] or 530-752-3184. If you are a student who requires academic accommodations, please submit your SDC Letter of Accommodation to me as soon as possible, ideally within the first two weeks of this course.
Re-grading: If you believe that your midterm was incorrectly graded, you may submit it for a re-grade no later than four days after it is returned to you (and the answer key has been posted) through the regrade feature on Gradescope.
Grading scale:
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A+
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A
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A-
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B+
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B
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B-
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C+
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C
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C-
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D+
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D
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D-
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F |
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97.0 and above
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93.0-96.9
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90.0-92.9
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87.0-89.9
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83.0-86.9
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80.0-82.9
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77.0-79.9
|
73.0-76.9
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70.0-72.9
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67.0-69.9
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63.0-66.9
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60.0-62.9
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below 59.9
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Online Learning:
Online learning can be challenging for both students and instructors. In order to mimic face-to-face instruction as much as possible we will follow the guidelines below:
1) Cameras should be on. This is not a requirement, but it seems to help students stay focused and engaged.
2) Microphones will be muted automatically at the beginning of class. Please unmute yourself if you wish to ask a question.
3) In addition to asking questions verbally, you are encouraged to ask questions and participate via Zoom “Chat” as well.
4) Please be prepared to enter the Zoom link a few minutes before class starts to make sure you are ready at the scheduled class time.
5) Other than Zoom, nothing else should be opened on your computer/tablet and your phone should be turned off.
*Please do not log into class if you do not plan on being engaged (listening, taking notes, etc.) in the class. While attendance is highly encouraged, it is not required.
Course Outline:
The course outline below is tentative. Some chapters may be skipped if we run into time constraints. I will announce any changes to the class schedule in advance.
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Week
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Topics and Readings
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Week 1:
Introduction and
Course Overview
Class dates:
8/2 – Introduction
and Chapter 1
8/3 – Finish
Chapter 1 and
Chapter 4
8/4 – Start Chapter
2
|
Textbook:
Chapter 1: Why health economics?
Chapter 4: Socioeconomic disparities in health
Chapter 2: Demand for health care
Additional Readings:
Vaccinations rates and death rates by race - link
Profile of the unvaccinated - link
Case, A., & Deaton, A. (2017). Mortality and morbidity in the 21st century. Brookings
Papers on Economic Activity, 2017, 397.
Aron-Dine, A., Einav, L., & Finkelstein, A. (2013). The RAND health insurance
experiment, three decades later. Journal of Economic Perspectives, 27(1), 197-222.
Video:
Social Inequalities in Health - link
|
|
Week 2: Demand
for Health, Health
Care, and Insurance
Class dates:
8/9 – Finish
Chapter 2 and start
Chapter 3
8/10 – Finish
Chapter 3 and start
Chapter 7
8/11 – Finish
Chapter 7
|
Textbook:
Chapter 2: Demand for health care (cont.)
Chapter 3: Demand for health: the Grossman model
Chapter 7: Demand for Insurance
Additional Readings:
Example of benefits form from UCD
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Week 3:
Adverse Selection,
Moral Hazard, and
Price of Health
Care
Class dates:
8/16 – Finish
Chapter 7 and
Chapter 10
8/17 – Chapter 11
8/18 – Chapters 13
and 14
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Textbook:
Chapter 10: Adverse Selection
Chapter 11: Moral Hazard
Chapter 13: Technology and the price of health care
Chapter 14: Health technology assessment
Additional Readings:
Gladwell, M. “The Moral Hazard Myth,” The New Yorker, August 29, 2005. - link
Einav, L., & Finkelstein, A. (2011). Selection in insurance markets: Theory and
empirics in pictures. Journal of Economic Perspectives, 25(1), 115-38.
Sisko, A. M., Keehan, S. P., Poisal, J. A., Cuckler, G. A., Smith, S. D., Madison, A.
J., ... & Hardesty, J. C. (2019). National Health Expenditure Projections, 2018–27:
Economic And Demographic Trends Drive Spending And Enrollment Growth. Health
Affairs, 38(3), 491-501.
Cutler, D., Skinner, J. S., Stern, A. D., & Wennberg, D. (2019). Physician beliefs and
patient preferences: a new look at regional variation in health care spending. American
Economic Journal: Economic Policy, 11(1), 192-221.
Podcast:
Costly Care in America (NPR) - link
Video:
Why does US Healthcare Cost so Much? (PBS) - link
Asymmetric Information and Health Insurance - link
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Week 4:
Adverse Selection
Class dates:
8/23 – Midterm
Exam
8/24 – Chapter 19
8/25 – Chapters 15
and 16
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Textbook:
Chapter 19: Population aging and the future of health policy
Chapter 15: The health policy conundrum
Chapter 16: The Beveridge model: nationalized health care
Article:
Fulmer, T., Reuben, D. B., Auerbach, J., Fick, D. M., Galambos, C., & Johnson, K. S.
(2021). Actualizing Better Health And Health Care For Older Adults: Commentary
describes six vital directions to improve the care and quality of life for all older
Americans. Health Affairs, 40(2), 219-225.
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Week 5: Moral
Hazard
Class dates:
8/30 – Chapter 17
8/31 – Chapter 18
9/1 – Finish
Chapter 18 and
Chapter 20
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Textbook:
Chapter 17: The Bismarck model: social health insurance
Chapter 18: The American model
Chapter 20: The economics of health externalities
Additional Readings:
Sommers, B. D., Maylone, B., Blendon, R. J., Orav, E. J., & Epstein, A. M. (2017).
Three-year impacts of the Affordable Care Act: improved medical care and health
among low-income adults. Health Affairs, 36(6), 1119-1128.
Goldman, A. L., McCormick, D., Haas, J. S., & Sommers, B. D. (2018). Effects of the
ACA’s health insurance marketplaces on the previously uninsured: a quasi-
experimental analysis. Health Affairs, 37(4), 591-599.
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Week 6:
Review and Final
Class dates:
9/6 – Labor Day
Holiday – no class
9/7 – Review
9/8 –Final Exam
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2021-08-05