Economics: Health Economics and Policy

Topics in economic theory of health and health care and empirical analysis of health care systems. Includes a substantial writing component. May repeat for credit with different content. Topics vary by offering; periodic offering at intervals that may exceed four years. Prerequisites: STAT 1410, ECON 2400, ECON 2450.

Prereqs enforced by the system: ECON 2400 and ECON 2450 and STAT 1410; May repeat for credit if topics differ. PACE students with permission and override. Instructor permission

This course examines the economic principles and policy challenges that shape the healthcare sector. Designed in a seminar format, it combines discussion-based learning with readings from both foundational and contemporary research at the frontier of health economics. Topics include demand-side considerations such as the role of insurance and moral hazard, and supply-side issues like provider incentives, hospital behavior, and market competition. The course also explores broader determinants of health, the rationale for government intervention, and the evaluation of modern health policies. Through written assignments and applied analysis, students will engage with economic models and research evidence to understand the interplay between theory, data, and policy.

This course meets in person. Students are expected to attend lectures, participate actively in discussions, and stay engaged with assigned readings and writing tasks. Because the course involves substantial analytical and writing components, students should plan to dedicate approximately 6–8 hours per week outside of class to coursework. The required textbook is Better Health Economics: An Introduction for Everyone by Tal Gross and Matthew J. Notowidigdo (ISBN: 9780226820330).

Final grades will be determined by performance on referee reports, the term paper and its milestones, the cumulative exam, and the final presentation.