Economics 5550 – Fall 2014
Syllabus
Health Economics
Allen C. Goodman
Class Meets: MW 3:00 – 4:50
Office Hours: MW 1:00 –2:30, after class, or by appointment
Office location: 2145 FAB
Phone: 577-3235; e-mail: allen.goodman@wayne.edu
Department and Course Web-site: http://www.econ.wayne.edu/agoodman/
This course teaches the allocation of health care resources, with respect to demand and
supply of health care. It examines the roles of hospitals, physicians, and health insurance. It also
looks at market imperfections and their role in economics of health care.
The text materials will be:
The Economics of Health and Health Care, 7th Edition by Sherman Folland, Allen C.
Goodman, and Miron Stano, to be purchased at the appropriate location.
Set of readings provided by Dr. Goodman.
Selected files (*.DOC, *.XLS, *.PPT) can be downloaded from the web site. To
do so, please:
1. "Right-click" on the mouse on the file to be downloaded.
2. On the menu that appears, "left click" on "Save Target as". You
will then designate a disk location. If you are working from a
public computer, you may wish to use a flash drive, and designate
your target as "[drive letter]:".
Exams and Grading
There will be 2 in-class mid-term exams and a final exam. The mid-term exams will be:
Monday, September 29 – 20% of course grade
Monday, October 27 – 20% of course grade.
The final exam, as noted on the exam schedule
http://reg.wayne.edu/finals/final_exam_schedule_fall_2014.pdf will be:
Friday, December 12 from 1:20 until 3:50 pm. It will be worth 27.5% of the course grade.
Other assignments will make up 32.5% of your grade. These will include homework
assignments, presentations and writing assignments, including materials available on the
University’s personal computing facilities and the World Wide Web. The assignments will be
tailored to the progress of the class. We will use the EXCEL and PowerPoint programs, and you
will be expected to have (or to obtain) a passing familiarity with them.
The following percentage curve will guide the grading policy in the course.
90 – 100 A ;
85 – 89.9 A-;
80 – 84.9 B+;
75 – 79.9 B ;
70 – 74.9 B- ;
65 – 69.9 C+ ;
60 – 64.9 C ;
55 – 59.9 C- ;
50 – 54.9
45 – 49.9
40 – 44.9
Below 40
D+ ;
D;
D- ;
F
Graduate students cannot receive grades below C. Any graduate score below 60% will be treated
as a failing grade.
Desired Course Learning Outcomes
1. To learn and apply the concepts and methods of health economics in depth.
2. To learn the historical context of health economics, the connections to other fields of
study, and the role of ethical values in decisions and policymaking.
3. To carry out independent research and communicate findings to students, faculty, and
others.
4. To interpret critically and communicate quantitative and verbal information about health
economics.
5. To learn how health economics can be applied to issues of contemporary concern.
6. To acquire skills and interests which enable students to be lifelong learners and
contributing members of their communities, including critical thinking, clear and
thoughtful communication, and honest and open inquiry.
Scheduling, Absences and Make-Up Policy
Mid-term make-up requests must be medical in nature, and must be accompanied by a
signed document from a health professional that indicates the nature of the illness, and the reason
that the exam can or could not be taken.
There will be no advance make-up scheduling for mid-term exams, with the exception of
religious holidays. Requests for an alternative date for the final must be made in writing, in
advance of the exam.
Drop/Add policy
According to the University’s Drop/Add policy, the last day to add a class without being
signed in is the fifth business day. In addition, the last day to withdraw from a class is the end of
the 10th week of class. I will NOT give grades of “Incomplete” instead of the appropriate
withdrawal grade. Please understand that withdrawing after the University deadline will result in
a grade of F. This is University Policy.
Academic Misconduct
Any instance of academic dishonesty for any assignment will lead to a grade of 0 on the
assignment. The appeal process as noted in the Student Due Process Procedure will be strictly
followed.
Disability
If you have a documented disability that requires accommodations, you must register
with Student Disability Services (SDS) for coordination of your academic accommodations. The
Student Disability Services (SDS) office is located at 1600 David Adamany Undergraduate
Library in the Student Academic Success Services department. SDS telephone number is 313577-1851 or 313-577-3365 (TDD only). Once you have your accommodations in place, I will be
glad to meet with you privately during my office hours to discuss your special needs. The
Student Disability Services’ missions are to assist the university in creating an accessible
community where students with disabilities have an equal opportunity to participate fully in their
educational experience at Wayne State University.
Please be aware that a delay in getting SDS accommodation letters for the current
semester may hinder the availability or facilitation of those accommodations in a timely manner.
Therefore, it is in your best interest to get your accommodation letters as early in the semester as
possible.
Topics and Readings
Introduction (Weeks 1 – 2)
FGS 1 2, 3, 4
Fuchs, Victor R., “The Future of Health Economics,” Journal of Health Economics 19
(2000): 141–157.
FGS 2, 3, 4
Manns, B., Meltzer, D., Taub, K., Donaldson, C., “Illustrating the impact of including
future costs in economic evaluations: an application to end-stage renal disease.” Health
Economics 12 (2003): 949-958
Supply and Demand (3 – 4)
FGS 5, 7
Cutler, David M., Edward L. Glaeser and Jesse M. Shapiro, “Why Have Americans
Become More Obese?” Journal of Economic Perspectives 17 (2003): 93–118
Information and Insurance (5 – 6)
FGS 8, 10, 11 (Pp. 210 – 230)
Akerlof, George A. “The Market for ‘Lemons’: Quality Uncertainty and the Market
Mechanism,” The Quarterly Journal of Economics, 84, (3) (1970): 488-500.
Pauly, Mark V. “The Economics of Moral Hazard: Comment,” American Economic
Review 58 (1968): 531 – 538.
Managed Care (7)
FGS 12
Selected items from Kaiser Family Foundation, http://www.kff.org/
Health Care Costs and Technology (8 – 9)
FGS 6, 11 (Pp. 230 – 233), 15, 17
Weisbrod, Burton A., “The Health Care Quadrilemma: An Essay on Technological
Change, Insurance, Quality of Care, and Cost Containment,” Journal of Economic Literature 29
(1991): 523 – 552.
Equity and Need (10)
FGS 18, 20
Williams, Alan, “Intergeneration Equity: An Exploration of the ‘Fair Innings’
Argument,” Health Economics 6 (1997): 117 – 132.
Social Insurance and Health Policy (11 – 13_
FGS 21, 22, 23
Cutler, David M. and Dan K. Ly, “The (Paper) Work of Medicine: Understanding
International Medical Costs,” Journal of Economic Perspectives 25 (2011): 3 – 25.
Selected items from Kaiser Family Foundation, http://www.kff.org/
Selected items from Commonwealth Fund, http://www.commonwealthfund.org/