Aaron YelowitzApplied economist · University of Kentucky
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Historical

ECO 383 · Fall 2020

Health Economics

Historical syllabus; policies and dates reflect this term.

Archived syllabus. Policies, dates, assignments, and readings reflect Fall 2020.

Course information

Economics 383-002: Health Economics University of Kentucky Fall Semester 2020

  1. 0 Credits TR/11:00 am – 12:15 pm Eastern Time/Online Only

Instructor Information

Professor Aaron Yelowitz Office: 225H Business & Economics Building Email: aaron@uky.edu Office hours: Thursday, 2:00 pm – 4:00 pm Eastern Time (Via Zoom, please contact me ahead of time) and by appointment.

Course Description

This course examines the organization, financing, and management of the U.S. health care system and programs, and emphasizes contemporary health policy concerns.

Course Prerequisites

ECO 201 and 202 or equivalent.

Student Learning Outcomes

After completing this course, the student will be able to:

  1. Identify the major features of the health care system in the United States.
  2. Contrast how health care markets differ from other economic markets.
  3. Apply data to examine how health care markets operate.
  4. Analyze whether empirical findings from data application are consistent with theory.
  5. Integrate economic theory and empirical analysis to understand health care markets.
  6. Assess whether health care policy proposals will have the intended consequences.

Required Materials

  1. Charles E. Phelps, Health Economics, 6th edition (Routledge, 2018, ISBN: 978-1-138-20798-1).
  2. There will be 7 popular readings, available on the web.
  3. There will be 4 academic readings, which are freely available from National Bureau of Economic Research or JSTOR.
  4. There will be class supplements and sample problems, distributed on Canvas prior to lecture.

Activities and Assignments

Course Assignments

• Active, timely watching of online videos (10%) • Canvas quizzes (40%) • Participation in live Zoom sessions during scheduled class time (10%) • Midterm (20%) • Final (20%)

Summary Description of Course Assignments

• 10%: Active timely watching of asynchronous lectures (prior to live online sessions). Videos (and powerpoints) will be posted in a timely fashion. During the videos, real-time questions will pop up, which you will be required to answer. You will be expected to watch videos prior scheduled class lectures to earn credit. • 40%: Graded quizzes on Canvas will be based on asynchronous lectures and live Zoom lectures. They will not be proctored, but you are required by UK’s Honor Code to complete them with integrity, which includes closed notes (unless otherwise mentioned) and independently of other students (unless otherwise noted). Each quiz may include multiple choice, essay, or worked-out mathematical problems. The quizzes will be timed and you will have a limited window to complete them from the time they are posted. Related to academic integrity, you may not discuss quiz questions with other students until the quiz is reviewed in class. • 10%: Participation in live Zoom sessions; we will use polls during online sessions. • 20%: Midterm. The midterm will be given online, will be proctored, and (if possible) will be done synchronously on Thursday, October 8, 2020 during normal class time (11:00 am-12:15 pm Eastern Time). • 20%: Final. The final will be given online, will be proctored, and (if possible) will be done synchronously on Thursday, December 3, 2020 during normally scheduled final exam time (10:30 am-12:30 pm Eastern Time).

Submission of Assignments

All assignments will be submitted via Canvas or other online means that will be detailed later. For students with an excused absence, alternative arrangements will be made. There will be no assigned homework; however, practice problems will be distributed and then reviewed during online Zoom sessions. These problems will help you prepare for the quizzes and exams.

Course Grading

A grading curve will be applied; historically in classes similar to this, approximately 30% of students earn an A; 50% earn a B; and 20% earn a C or lower. Mid-term grades will be posted in myUK by the deadline established in the Academic Calendar.

Attendance Policy

/ Recording Policy / Facemask Policy Students are strongly encouraged to attend every live Zoom session and review the assigned online lectures in advance. Many of the readings – especially the academic readings – will be easier to understand with live Zoom attendance. To better encourage participation during live sessions, you

are encouraged (but not required) to keep your video camera on (and please keep your microphone muted to avoid sound feedback). However, if you are uncomfortable with your camera on, this is not required. Also, the live Zoom sessions will be recorded and subsequently shared on Canvas for students who were unable to attend the session. If you notice any issues with the Zoom sessions, please let the professor or TAs know.

This course is entirely online during fall 2020. As a consequence, there are no directives regarding facemask policy for this specific class. If, for some unforeseen reason, any part of this class ends up being in-person, all mask requirements will be fully enforced.

Course Schedule

, Economics 383, Fall 2020

I. Introduction and Background

A. Phelps, Chapter 1

C. Phelps, Chapter 2

  • Utility and Health D. Chapter 2 Supplemental Readings
  • Class Supplement 1: Expected utility and insurance / insurance market pricing

II. Medical Care and Health

A. Phelps, Chapters 3 & 4

  • The Transformation of Medical Care to Health

  • The Demand for Medical Care: Conceptual Framework B. Phelps, Chapter 5

  • Empirical Studies of Medical Care Demand and Applications C. Chapter 5 Supplemental Readings

  • Academic Reading 1: Aron-Dine, et al., 2013. “The RAND Health Insurance Experiment, Three Decades Later,” Journal of Economic Perspectives, 27(1): 197-222.

  • Academic Reading 2: Finkelstein, et al., 2012. “The Oregon Health Insurance Experiment: Evidence from the First Year,” Quarterly Journal of Economics, 127(3): 1057-1106.

  • Class Supplement 2: Relative Risk Ratio

III. Physician Behavior, Malpractice, and Defensive Medicine

A. Phelps, Chapters 6 & 7

  • The Physician and the Physician-Firm

  • Physicians in the Marketplace B. Chapter 6 Supplemental Reading

  • Academic Reading 3: Marton, J., A. Yelowitz, and J. Talbert, 2014. “A Tale of Two Cities? Heterogeneous Impact of Medicaid Managed Care in Kentucky,” Journal of Health Economics, 36(1): 47-68. C. Phelps, Chapter 13

  • Medical Malpractice D. Chapter 13 Supplemental Readings

  • Academic Reading 4: Kessler, D. and and M. McClellan, 1996. “Do Doctors Practice Defensive Medicine?” The Quarterly Journal of Economics, 111(2): 353-390.

Midterm Grades

for Undergraduate Students (Senate Rules 6.1.3.A) Mid-term grades will be posted in myUK by the deadline established in the Academic Calendar.

Excused Absences (Senate Rules 5.2.4.2) Senate Rules 5.2.4.2 defines the following as acceptable reasons for excused absences: (a) significant illness, (b) death of a family member, (c) trips for members of student organizations sponsored by an educational unit, trips for University classes, and trips for participation in intercollegiate athletic events, (d) major religious holidays, (e) interviews for graduate/professional school or full-time employment post-graduation, and (f) other circumstances found to fit “reasonable cause for nonattendance” by the instructor of record. Students should notify the professor of absences prior to class when possible.

If a course syllabus requires specific interactions (e.g., with the instructor or other students), in situations where a student’s total EXCUSED absences exceed 1/5 (or 20%) of the required interactions for the course, the student shall have the right to request and receive a "W," or the Instructor of Record may award an “I” for the course if the student declines a “W.” (Senate Rules 5.2.4.2.1)

(If an attendance/interaction policy is not stated in the course syllabus or the policy does not include a penalty to the student, the

Instructor

cannot penalize the student for any unexcused absences.)

Verification of Absences (Senate Rules 5.2.4.2.A, B, C, and E) Students may be asked to verify their absences in order for them to be considered excused. Senate Rule 5.2.4.2 states that faculty have the right to request appropriate verification when students claim an excused absence due to: significant illness; death in the household, trips for classes, trips sponsored by an educational unit and trips for participation related to intercollegiate athletic events; and interviews for full-time job opportunities after graduation and interviews for graduate and professional school. (Appropriate notification of absences due to University-related trips is required prior to the absence when feasible and in no case more than one week after the absence.)

Religious Observances (Senate Rules 5.2.4.2.D) Students anticipating an absence for a major religious holiday are responsible for notifying the instructor in writing of anticipated

Absences

due to their observance of such holidays. Please check the course syllabus for the notification requirement. If no requirement is specified, two weeks prior to the absence is reasonable and should not be given any later. Information regarding major religious holidays may be obtained through the Ombud’s website or calling.

Make-Up Work (Senate Rule 5.2.4.2) Students missing any graded work due to an excused absence are responsible: for informing the Instructor of Record about their excused absence within one week following the period of the excused absence (except where prior notification is required); and for making up the missed work. The instructor must give the student an opportunity to make up the work and/or the exams missed due to the excused absence, and shall do so, if feasible, during the semester in which the absence occurred. The instructor shall provide the student with an opportunity to make up the graded work and may not simply calculate the student's grade on the basis of the other

Course Requirements

, unless the student agrees in writing.

Accommodations Due to Disability If you have a documented disability that requires academic accommodations, please see me as soon as possible during scheduled office hours. In order to receive accommodations in this course, you must provide me with a Letter of Accommodation from the Disability Resource Center (DRC). The DRC coordinates campus disability services available to students with disabilities. Visit the DRC website, email the DRC, contact them by phone at, or visit their office on the corner of Rose Street and Huguelet Drive in the Multidisciplinary Science Building, Suite 407.

Non-Discrimination Statement and Title IX Information UK is committed to providing a safe learning, living, and working environment for all members of the University community. The University maintains a comprehensive program which protects all members from discrimination, harassment, and sexual misconduct. For complete information about UK’s prohibition on discrimination and harassment on aspects such as race, color, ethnic origin, national origin, creed, religion, political belief, sex, and sexual orientation, please see the electronic version of UK’s Administrative Regulation 6:1 (“Policy on Discrimination and Harassment”). In accordance with Title IX of the Education Amendments of 1972, the University prohibits discrimination and harassment on the basis of sex in academics, employment, and all of its programs and activities. Sexual misconduct is a form of sexual harassment in which one act is severe enough to create a hostile environment based on sex and is prohibited between members of the University community and shall not be tolerated. For more details, please see the electronic version of Administrative Regulations 6:2 (“Policy and Procedures for Addressing and Resolving Allegations of Sexual Assault, Stalking, Dating Violence, Domestic Violence, and Sexual Exploitation”). Complaints regarding violations of University policies on discrimination, harassment, and sexual misconduct are handled by the Office of Institutional Equity and Equal Opportunity (IEEO), which is located in 13 Main Building and can be reached by phone at. You can also visit the IEEO’s website.

Faculty members are obligated to forward any report made by a student related to IEEO matters to the Office of Institutional Equity and Equal Opportunity. Students can confidentially report alleged incidences through the Violence Intervention and Prevention Center, Counseling Center, or University Health Services.

Academic Integrity

– Prohibition on Plagiarism (Senate Rules 6.3.1) Per University policy, students shall not plagiarize, cheat, or falsify or misuse academic records. Students are expected to adhere to University policy on cheating and plagiarism in all courses. The minimum penalty for a first offense is a zero on the assignment on which the offense occurred. If the offense is considered severe or the student has other academic offenses on their record, more serious penalties, up to suspension from the University may be imposed.

Plagiarism and cheating are serious breaches of academic conduct. Each student is advised to become familiar with the various forms of academic dishonesty as explained in the Code of Student Rights and Responsibilities. Complete information can be found on the Academic Ombud page. A plea of ignorance is not acceptable as a defense against the charge of academic dishonesty. It is important that you review this information as all ideas borrowed from others need to be properly credited.

Senate Rule 6.3.1 (see current Senate Rules) states that all academic work, written or otherwise, submitted by students to their instructors or other academic supervisors, is expected to be the result of their own thought, research, or self-expression. In cases where students feel unsure about a question of plagiarism involving their work, they are obliged to consult their instructors on the matter before submission.

When students submit work purporting to be their own, but which in any way borrows ideas, organization, wording, or content from another source without appropriate acknowledgment of the fact, the students are guilty of plagiarism.

Plagiarism includes reproducing someone else's work (including, but not limited to a published article, a book, a website, computer code, or a paper from a friend) without clear attribution. Plagiarism also includes the practice of employing or allowing another person to alter or revise the work, which a student submits as his/her own, whoever that other person may be. Students may discuss assignments among themselves or with an instructor or tutor, but when the actual work is done, it must be done by the student, and the student alone.

When a student's assignment involves research in outside sources or information, the student must carefully acknowledge exactly what, where and how he/she has employed them. If the words of someone else are used, the student must put quotation marks around the passage in question and add an appropriate indication of its origin. Making simple changes while leaving the organization, content, and phraseology intact is plagiaristic. However, nothing in these Rules shall apply to those ideas, which are so generally and freely circulated as to be a part of the public domain.

Please note: Any assignment you turn in may be submitted to an electronic database to check for plagiarism.

academic integrity– Prohibition on Cheating (Senate Rules 6.3.2) Cheating is defined by its general usage. It includes, but is not limited to, the wrongfully giving, taking, or presenting any information or material by a student with the intent of aiding himself/herself or another on any academic work which is considered in any way in the determination of the final grade. The fact that a student could not have benefited from an action is not by itself proof that the action does not constitute cheating. Any question of definition shall be referred to the University Appeals Board.

academic integrity– Prohibition on Falsification/Misuse of Academic Records (SR 6.3.3) Maintaining the integrity, accuracy, and appropriate privacy of student academic records is an essential administrative function of the University and a basic protection of all students. Accordingly, the actual or attempted falsification, theft, misrepresentation or other alteration or misuse of any official academic record of the University, specifically including knowingly having unauthorized access to such records or the unauthorized disclosure of information contained in such records, is a serious academic offense. As used in this context, "academic record" includes all paper and electronic versions of the partial or complete permanent academic record, all official and unofficial academic transcripts, application documents and admission credentials, and all academic record transaction documents. The minimum sanction for falsification, including the omission of information, or attempted falsification or other misuse of academic records as described in this section is suspension for one semester.