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Topics in Health Economics

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Topics in Health EconomicsTopi

    Industrial Organization

    Topics in Health Economics

    Graduate program of the Department of Economics UC3M

    2011-2012

    Prof. Matilde P. Machado

    1. Introduction - issues

    ; Arrow, Kenneth, J. (1963). “Uncertainty and the Welfare Economics of

    Medical Care.” American Economic Review, 53: 941-73.

    2. Demand for Health Care

    2.1 Moral Hazard

    ; Manning, W. G. et al. (1987). “Health Insurance and the Demand for Medical

    Care: Evidence from a Randomized Experiment.” American Economic

    Review. 77: 251-277.

    ; Pauly, Mark (1968) “The Economics of Moral Hazard: comment,” American

    Economic Review, 58(3): 531-537

; Barros, Pedro P., Machado, Matilde P., and Sanz-de-Galdeano, Anna: Moral

    hazard and the demand for health services: a matching estimator approach,”

    Journal of Health Economics, vol 27, July 2008, pp 1006-1025.

    2.2 Adverse Selection and Risk Selection

    ; Rothschild, Michael and Joseph E. Stiglitz (1976). “Equilibrium in

    Competitive Insurance Markets: An Essay on the Economics of Imperfect

    Information.” Quarterly Journal of Economics 90(4): 630-49.

    ; Vera, Marcos, Olivella, Pau: “Testing for Adverse Selection into Private

    Medical Insurance” IFS Working paper WP06/02.

    3. Supply of Health goods and services

3.1. The Effect of Health Insurance Mandates

    ; Gruber, Jonathan (1994): “The Incidence of Mandated Maternity Benefits,”

    The American Economic Review, Vol. 84, No. 3 (Jun., 1994), pp. 622-641

    3.2. Comparing the performance of Health Care Providers ; Gowrisankaran, Gautam and Town, Robert (1999) “Estimating the Quality

    of Care in Hospitals using Instrumental Variables,” Journal of Health

    Economics, 18, pp 747-67. (complementary readings 5)

; Machado, Matilde, Mora, Ricardo, and Romero-Medina, Antonio “Can we

    infer hospital quality from physicians‟ residency choices?” Mimeo.

    If time allows:

    ; Ackerberg, Machado, and Riordan, Benchmarking for Productivity Improvement:

    a Health Care Application,” International Economic Review, vol 47, nº1, pp 161-

    201 February 2006.

3.3. Competition and Information

    ; Dranove, David, Kessler, Daniel P., McClellan, Mark, and Satterthwaite,

    Mark (2003). “Is More Information Better? The Effects of „Report Cards‟ on

    Health Care Providers,” Journal of Political Economy, 111(3): 555-588.

    Evaluation: Final exam and presentation of a paper from a list of published papers in

    health economics.

    List of papers for class presentations from which students can select:

    (1) Chiappori, Pierre-André, Durand, Frank, Geoffard, Pierre-Yves (1998): Moral Hazard and the Demand for physician services: First Lessons from a French Natural Experiment, European Economic Review, 42, pp 499-511.

    (2) Vera-Hernandéz, Marcos (1999): “Duplicate Coverage and Demand for

    Health Care. The case of Catalonia, Health Economics vol 8 pp 579-598.

    (3) Feldman and Dowd (1991) “New Evidence on the Welfare Loss of Excess

    Health Insurance,” AER 81, 297-301.

    (4) Card, David, Dobkin, Carlos and Nicole Maestas, 2008: “The Impact of Nearly Universal Insurance Coverage on Health Care Utilization: Evidence from Medicare” AER, 98(5), 2242-2258.

    (5) Brown, Jeffrey and Amy Finkelstein, 2008: “The Interaction of Public and

    Private Insurance: Medicaid and the Long-Term Care Insurance Market” AER

    98(3) pp 1083-1102.

    (6) Fang, Hanming, Keane, Michael P., and Dan Silverman (2008): “Sources of Advantageous Selection: Evidence from the Medigap Insurance Market,” JPE,

    116(2), 303-350.

    (7) Beakley, Hoyt (2007): “Disease and Development: Evidence from Hookworm Eradication in the American South,” QJE, February 2007.

    (8) Chandra, Amitabh and Staiger, Douglas O. (2007): “Productivity Spillovers in Health Care: Evidence from the treatment of heart attacks,” JPE, vol 115(1), pp 103-140.

    (9) Finkelstein, Amy (2007): “The aggregate effects of Health Insurance: Evidence from the Introduction of Medicare,” QJE, February 2007

    (10) Iizuka, Toshiaki (2007): “Experts‟ agency Problems: Evidence from

    Japan” RAND Journal of Economics, 38(3), 844-862.

    (11) Propper, Carol and Van Reenen, John (2010): “Can Pay Regulation Kill? Panel Data Evidence on the Effect of Labor Markets on Hospital Performance”, Journal of Political Economy, 118(2), 222-273. This paper was the Arrow Award

    winner for the best published paper in Health Economics in 2010.

    (12) Almond, Douglas, Doyle, Joseph J., Kowalski, Amanda E., Williams, Heidi (2010): “Estimating Marginal Returns to Medical Care: Evidence from at-risk Newborns,” The Quarterly Journal of Economics, May 2010

    (13) Einav, Liran, Finkelstein, Amy, and Cullen, Mark R. (2010): “Estimating Welfare in Insurance Markets using Variation in Prices,” The Quarterly Journal of Economics, 125(3), 877-921.

    Complementary reading/references:

    (14) Bound, John, Jaeger, David A., and Baker, Regina (1993): “The cure can

    be worse than the disease: A cautionary tale regarding instrumental

    variables”, NBER Technical Paper, #137.

    (15) Train, Kenneth E. (2002): Discrete Choice Methods with Simulation,

    Cambridge University Press, chapters 2, 3, 4.

    (16) Cameron, A. Colin, Gelbach, Jonah B., Miller, Douglas L. (2006):

    “Robust Inference with Multi-Way Clustering,” NBER Technical WP

    Series 327.

    (17) Abadie, Alberto and Javier Gardeazabal (2003): The Economic Costs of

    Conflict: A Case Study of the Basque Country”, American Economic

    Review, 93(1), 112-132.

    (18) Abadie, Alberto, Diamond, Alexis, and Jens Hainmueller (2007):

    Synthetic Control Methods for Comparative Case Studies: Estimating the

    Effect of Californias Tobacco Control Program,” forthcoming in the

    Journal of the American Statistical Association.

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