Health Economics 2012
INSTRUCTOR
Christy Pu, Ph.D.
cypu@ym.edu.tw
Tel: 28267942
Office Hours: By appointment
Yiing-Jenq Chou, M.D. Ph.D.
yjchou@ym.edu.tw
Tel: 28267017
Office Hours: By appointment
COURSE OBJECTIVES
The primary objectives of this course: (1) To introduce application of basic
microeconomic concepts and tools to resource allocation and policy problems facing
health-sector decision makers internationally. (2) To cover the application of demand concepts to
health care-seeking behavior and their implications for marketing and for the design of insurance
programs, (3) To uses basic concepts of cost and production theory to examine problems in
efficiency measurement and issues of market structure.
COURSEWORK
The work consists of: (1) mid-term exam; (2) final exam; and (3) student participation.
GRADING SYSTEM
Each exam accounts for 40% of your final grade (total 80%), and the student
participation for 20% of the overall course grade.
REQUIRED TEXT
Michael Parkin. “ Economic” 2011 (10th edition).
Sherman Folland et al. “The Economic of Health and Health Care” Prentice Hall, Inc. 2009 (6th
edition).
Time: Friday 8:00 AM – 09:50 AM
Location: Room 221, Medical Building Ⅱ
1
Health Economics
Course Outline/Syllabus
日
期
講
題
教師姓名(中文)
2/24
Introduction
蒲正筠/周穎政
3/02
The Production of Health
蒲正筠/周穎政
3/09
World Health
蒲正筠/周穎政
3/16
Socioeconomic Status and Health
蒲正筠/周穎政
3/23
Economic Efficiency and Cost Benefit Analysis
蒲正筠/周穎政
3/30
The Demand for Health Capital
蒲正筠/周穎政
4/06
The Health Economics of Bads
蒲正筠/周穎政
4/13
Epidemiology and economics
蒲正筠/周穎政
4/20
Mid-term Exam
蒲正筠/周穎政
4/27
Health care system and Health Insurance I
蒲正筠/周穎政
5/04
Health care system and Health Insurance II
蒲正筠/周穎政
5/11
Health care system and Health Insurance III
蒲正筠/周穎政
5/18
Health care system and Health Insurance Ⅳ
蒲正筠/周穎政
5/25
Health care system and Health Insurance Ⅴ
蒲正筠/周穎政
6/01
Health care system and Health Insurance Ⅵ
蒲正筠/周穎政
6/08
Asymmetric Information and Agency
蒲正筠/周穎政
6/15
Pharmaceutical Industry
蒲正筠/周穎政
6/22
Final Exam
蒲正筠/周穎政
2
Health Economics
Course Outline/Syllabus
1. Introduction (2/24)
Required:
Folland et al, chapter 1.
Arrow, Kenneth J. Uncertainty and the Welfare Economics of Medical Care. Uncertain times:
Kenneth Arrow and the changing economics of health care 2003, pp. 1-33
Fuchs VR. The future of health economics. J Health Econ 2000 Mar; 19(2):141-57. Review.
2. The Production of Health (3/2)
Chapter source:
Folland et al, chapter 5.
Classic:
David C, Angus D, Adriana LM. The Determinants of Mortality. The Journal of Economic
Perspectives 2006 Summer; 20(3):97-120.
Fogel, Robert W., “Economic Growth, Population Theory, and Physiology: The Bearing of
Long-Term Processes on the Making of Economic Policy,” American Economic Review,
1994, 84(3), 369-395.
Extended readings:
•
Mokdad, Ali H., James S. Marks, Donna F. Stroup, and Julie L. Gerberding, “Actual
Causes of Death in the United States, 2000,” JAMA, 2004, 291(1), 1238-1245.
•
Almond, Doug, Lena Edlund, and Mårten Palme, “Chernobyl’s Subclinical Legacy:
Prenatal Exposure to Radioactive Fallout and School Outcomes in Sweden,” Quarterly
Journal of Economics, 2009, 124(4), 1729-1772.
•
Maccini, Sharon and Dean Yang, “Under the Weather: Health, Schooling and
Socioeconomic Consequences of Early Life Rainfall, American Economic Review, 2009,
99(3), 1006, 1026.
•
Deaton, Angus, “The Great Escape: A Review of Robert Fogel’s The Escape from
Hunger and Premature Death 1700-2100” Journal of Economic Literature, 2006, 44(1),
106-114.
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3. World Health (3/9)
4. Socioeconomic Status and Health (3/16)
Classic:
Angus Deaton, 2003. "Health, Inequality, and Economic Development," Journal of
Economic Literature, American Economic Association, vol. 41(1), pages 113-158, March.
Smith JP. Healthy Bodies and Thick Wallets The Dual Relation between Health and
Economic Status. Journal of Economic Perspectives 1999 Spr;13(2):145-166.
Extended readings:
• Lleras-Muney, Adriana, “The Relationship Between Education and Adult Mortality in the
U.S.,”Review of Economic Studies, 2005, 72(1), 189-221.
• Cutler, David and Adriana Lleras-Muney, “Understanding Differences in Health Behavior
by Education,” mimeo, 2009.
5. Economic Efficiency and Cost Benefit Analysis (3/23)
Chapter source: Folland et al, chapter 4.
Recommended:
Liu, J. T., J. K. Hammitt, et al. (2005). "Valuation of the risk of SARS in Taiwan." Health
Econ 14(1): 83-91.
Extended readings:
Hammitt JK, Liu JT, Lin WC. Sensitivity of willingness to pay to the magnitude of risk
reduction: a Taiwan-United States comparison . Journal of Risk Research, 3,(4 ) 2000, 305 –
320.
6. The Demand for Health Capital (3/30)
Folland et al, chapter 7.
Grossman M. On the Concept of Health Capital and the Demand for Health. The Journal of
Political Economy 1972 Mar-Apr; 80(2): 223-255.
Becker GS, Grossman M, Murphy KM. Rational Addiction and the Effect of Price on
Consumption .The American Economic Review, Vol. 81, No. 2, Papers and Proceedings of
the Hundred and Third Annual Meeting of the American Economic Association 1991 May,
pp. 237-241.
4
7. The Health Economics of Bads (4/6)
Folland et al, chapter 23.
Preston SH. Deadweight?--The influence of obesity on longevity. N Engl J Med 2005 Mar 17;
352(11):1135-7.
Olshansky SJ, Passaro DJ, Hershow RC, Layden J, Carnes BA, Brody J, Hayflick L, Butler
RN, Allison DB, Ludwig DS. A potential decline in life expectancy in the United States in
the 21st century. N Engl J Med 2005 Mar 17;352(11):1138-45.
8. Epidemiology and economics (4/13)
Folland et al, chapter 24.
9. Mid-term Exam (4/20)
10.-15. Health care system and Health Insurance (4/27, 5/4, 5/11, 5/18, 5/25, 6/1)
Folland et al, chapter 8,9,11.
Book:
Barr N. The Economics of the Welfare State. Stanford University Press. California, 1998.
Rosen HS. Public Finance. 4th ed. Department of Economics, Princeton University, 1995.
Journal article:
Basic concept:
Weisbrod BA. The health care quadrilemma: an essay on technological change, insurance,
quality of care, and cost containment. J Econ Lit 1991; 29(2):523-552.
Newhouse JP. Medical Care Costs: How Much Welfare Loss? J Econ Perspect 1992;
6(3):3-21.
Newhouse JP. An iconoclastic view of health cost containment: Health Aff (Millwood) 1993;
12 Suppl:152-71
Newhouse JP. Why is there a quality chasm? Health Aff (Millwood) 2002 Jul-Aug;
21(4):13-25.
Cutler DM, McClellan M. Is technological change in medicine worth it? Health Aff
(Millwood) 2001; 20(5):11-29.
Getzen TE. Aggregation and the Measurement of Health Care Costs. HSR
2006;41(5):1938-1954.
Financing of National Health Insurance:
Summers LH. What Can Economics Contribute to Social Policy? Some Simple Economics
of Mandated Benefits. The American Economic Review, 79(2). Papers and Proceedings of the
5
Hundred and First Annual Meeting of the American Economic Association 1989 May; pp.
177-183.
Jonathan G. The Incidence of Mandated Maternity Benefits. Am Econ Rev 1994; 84(3):622-4.
van Doorslaer E, Wagstaff A, van der Burg H, Christiansen T, De Graeve D, Duchesne I,
Gerdtham UG, Gerfin M, Geurts J, Gross L, Hakkinen U, John J, Klavus J, Leu RE, Nolan B,
O'Donnell O, Propper C, Puffer F, Schellhorn M, Sundberg G, Winkelhake O. Equity in the
delivery of health care in Europe and the US. J Health Econ 2000 Sep; 19(5):553-83.
Wagstaff A, van Doorslaer E, van der Burg H, Calonge S, Christiansen T, Citoni G,
Gerdtham UG, Gerfin M, Gross L, Hakinnen U, Johnson P, John J, Klavus J, Lachaud C,
Lauritsen J, Leu R, Nolan B, Peran E, Pereira J, Propper C, Puffer F, Rochaix L, Rodriguez
M, Schellhorn M, Winkelhake O, et al. Equity in the finance of health care: some further
international comparisons. J Health Econ 1999 Jun; 18(3):263-90.
Newhouse JP. Financing Medicare in the next administration. N Engl J Med 2004 Oct 21;
351(17):1714-6.
Demand-side and supply-side cost sharing:
Manning WG, Newhouse JP, Duan N, Keeler EB, Leibowitz A, Marquis MS. Health
insurance and the demand for medical care: evidence from a randomized experiment. Am
Econ Rev 1987; 77(3):251-77.
Newhouse JP. Reimbursing Health Plans and Health Providers: Efficiency in Production
versus Selection. Journal of Economic Literature 1996 Sep; 34(3):1236-1263.
Newhouse JP. Consumer-directed health plans and the RAND Health Insurance Experiment.
Health Aff (Millwood) 2004 Nov-Dec; 23(6):107-13.
Payment system:
Waters HR, Hussey P. Pricing health services for purchasers--a review of methods and
experiences. Health Policy 2004 Nov; 70(2):175-84.
Jegers M, Kesteloot K, De Graeve D, Gilles W. A typology for provider payment systems in
health care. Health Policy 2002 Jun; 60(3):255-73.
Scanlon WJ. The future of medicare hospital payment. Health Aff (Millwood) 2006 Jan-Feb;
25(1):70-80.
Managed care:
Enthoven AC. The history and principles of managed competition. Health Aff (Millwood)
1993; 12 Suppl:24-48.
Newhouse JP. Risk adjustment: where are we now? Inquiry 1998 Summer; 35(2):122-31.
International comparison:
Hsiao WC. Comparing health care systems: what nations can learn from one another. J
Health Polit Policy Law 1992; 17(4):613-36.
Cutler DM. Equality, efficiency, and market fundamentals: the dynamics of international
medical-care reform. J Econ Lit 2002; 40(3):881-906.
6
Iglehart JK. Revisiting the Canadian health care system. N Engl J Med 2000 Jun 29;
342(26):2007-12.
16. Asymmetric Information and Agency (6/8)
Folland et al, chapter 10.
Supplier-Induced Demand
Folland et al, chapter 15.
17. Pharmaceutical Industry (6/15)
Folland et al, chapter 17.
18. Final Exam (6/22)
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