Fundamentals in Health Economics

Department
  • Master's Program International Health & Social Management
Course unit code
  • IHCM1ECO1201
Level of course unit
  • Master
Semester when the course unit is delivered
  • 1
Number of ECTS credits allocated
  • 5.0
Name of lecturer(s)
  • Dr. Zoller Claudia
  • Dr. Krusekopf Charles
  • Univ.-Prof. Dr.oec. Güntert Bernhard Jean
  • Paolucci Francesco, PhD
Learning outcomes of the course unit
  • • Students should understand the economic relevance of health and health care
    • Students should understand the production, cost and technology of healthcare, and the demand for health and health care
    • Students should understand the physician agency: models of physician behavior, SID, supply response to price
    • Students should understand the demand and supply of insurance, moral hazard and adverse selection, and limits of healthcare insurance markets & role of the State
    • Getting a framework for analyzing health care financing
    • Students should understand the role health insurance and of the self-governing bodies
    • Interpreting public policies as addressing tradeoffs in health care allocations
    • Gathering insights on ways to improve efficiency and access to health care
Mode of delivery
  • face-to-face
Prerequisites and co-requisites
  • none
Course contents
  • - The relevance of health and healthcare economy.
    - The method of health economics.
    - Why is the economics of healthcare different?
    - Market failures in healthcare markets
    - General functions of a healthcare system
    - The Neo-classical model, Principal-Agent framework
    - Providers' Behaviour, Supply induced demand, Providers Payments
    - Risk, risk aversion, demand for insurance, problems caused by adverse selection and moral hazard. Empirical studies of how large the problems are (RAND health insurance Study, tools to reduce the problems (universal systems, deductibles, copayment).
    - Financing health care, collecting-pooling-purchasing, the role of social and private health insurance
    - Types of regulation: Public ownership and provision, Public finance, but not ownership, Laws, Price regulation, Access permissions.
    - Costs and benefits of intervention: Theory of the second best and the information requirement for optimal intervention.
    - Typoliges of healthcare systems compared in an economics key

    Please be aware that this course requires high level of proficiency in English language. All local students have passed an English language test with at least 90 TOEFL points (internet based) or comparable tests.
Recommended or required reading
  • Reading materials:
    Chapter 1, Bhattacharya, Hyde and Tu, Health Economics, Palgrave Macmillan, 2014 (or equivalent in Folland)
    Extra reading:
    Chapter 1, Sloan and Hsieh, Health Economics, The MIT Press, 2012
    Chapter 2, Bhattacharya, Hyde and Tu, Health Economics, Palgrave Macmillan, 2014 (or equivalent in Folland)
    Extra reading:
    Chapter 3, Sloan and Hsieh, Health Economics, The MIT Press, 2012
    Chapter 3, Jones, et al. Applied Health Economics, 2nd Edition, Routledge, 2013
    Chapter 7-11 Bhattacharya, Hyde and Tu, Health Economics, Palgrave Macmillan, 2014 (or equivalent in Folland
    Van de Ven, W.P.M.M. (2011), Risk adjustment and risk equalization: what needs to be done?, Health Economics, Policy and Law 6:147-156. (8 pages)
    Special Issue on Agenda (2011) and Health Policy on Australia.
    Van de Ven, W.P.M.M., K. Beck, C. Van de Voorde, J. Wasem and I. Zmora (2007), Risk adjustment and risk selection in Europe: 6 years later, Health Policy 83:162-179. (17 pages)
    Health Systems in Transiation (HIT) for Austria, Germany, Switzerland, Netherlands; WHO/European Observatory, Homepage of the Health Ministries of these Countries
    Srivastava D. et al; Better Ways to Pay for Health Care, OECD, Paris 2016
    Paolucci "Healthcare financing and insurance: Options for design", Springer 2011. Chapters 2 and 3.
    Acemoglu, Laibson, List, Microeconomics, Second Edition 2018. Chapters 1-7
Planned learning activities and teaching methods
  • Teaching will be provided predominantly by the lecturer but time is also allocated for discussion of group and individual exercises
Assessment methods and criteria
  • To monitor the students’ learning this course will provide ongoing assignments as a basis for feedback and grading (formative assessment) and/or will evaluate the students learning at the end of the course or an instructional unit via exams, final project reports, essays or seminar papers (summative assessment).
Language of instruction
  • English