Aaron YelowitzApplied economist · University of Kentucky
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Historical

ECO 383 · Fall 2025

Health Economics

Historical syllabus; policies and dates reflect this term.

Archived syllabus. Policies, dates, assignments, and readings reflect Fall 2025.

Course information

ECO 383-001: Health Economics University of Kentucky Fall Semester 2025 3.0 Credits TR/11:00 am – 12:15 pm Eastern Time/B&E 183

Instructor Information

Professor Aaron Yelowitz Office: 225H B&E Building Email: aaron@uky.edu; if possible, please communicate with me through the Canvas email interface as it is easier for me to keep track of communication. Under normal circumstances, I will respond within 24 hours. Office hours: Tuesday/Thursday, 1 pm-2:30 pm Eastern Time (also, usually available one-on-one by Zoom on other days; please schedule in advance).

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.

Required Materials

  1. Charles E. Phelps, Health Economics, 6th edition (Routledge, 2018, ISBN: 978-1-138-20798-1).
  2. There will be 6 popular readings, available on the web.
  3. There will be 3 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.

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 and around the world.
  2. Contrast differences between health care markets and other markets.
  3. Understand construction and limitations of data and statistics used in health economics.
  4. Apply data and statistics to examine how health care markets operate.
  5. Analyze whether empirical findings from data application are consistent with economic theory.
  6. Assess the consequences of health care policy proposals.

Activities, Exams, and Grading Scheme

Course Assignments

  • Tutorials (20%): Open-book/open-note/untimed, on Canvas (usually weekly).
  • Quizzes (25%): Closed-book/closed-note/timed, on Canvas using Respondus Monitor.
  • Midterm (25%): Closed-book/closed-note/timed, on Canvas using Respondus Monitor.
  • Final (30%): Closed-book/closed-note/timed, on Canvas using Respondus Monitor.
  • Extra credit: Extra credit may be offered. It won’t affect the course scale / grades and will be added only at the end of the semester after the grading scale is determined.

Summary Description of Course Assignments

Note: regardless of the points assigned to a Canvas tutorial or quiz, each tutorial will count equally towards the 20% component of the letter grade, and similarly each quiz will count equally towards the 25% component of the letter grade. For example, if tutorial #1 has 8 points (8 questions) and tutorial #2 has 4 points (4 questions), they will be rescaled so they each count equally. The aggregate totals presented on Canvas do not accurately represent the weighting scheme.

In addition, an ungraded practice quiz using Respondus Monitor will be given prior to the very first quiz, as well as before the midterm and final (with questions like: “What is the first letter of the alphabet”, or a graphical picture), where the only intent is to make sure that your technology is working correctly. These are required but do not count towards your letter grade.

  • 20%: Open-book/open-note Canvas tutorial: You will be permitted to take the tutorial as many times as you want during the window that it is open. These will typically be assigned after each lecture and due 7 days later. Only the 20 highest scores count toward the tutorial grade.
  • 25%: At least 5 quizzes will be given during the semester. Graded quizzes on Canvas will be based on class lectures and any online videos. You will have a 24-hour window to complete the quiz, and quizzes will be announced at least one day in advance. They will be proctored using Respondus Monitor. Related to academic integrity, you may not discuss quiz questions with other students until the quiz is reviewed in class or online video.
  • 25%: Midterm. The midterm will be given online on Canvas, and will be proctored using Respondus Monitor, and you will have a 24-hour window on Tuesday, 10/21/2025 (Eastern Time). There will be no in-person meeting on the day of the midterm.
  • 30%: Final. The final will be given online on Canvas, will be proctored using Respondus Monitor and you will have a 24-hour window on Tuesday, 12/16/2025 (Eastern Time). There will be no in-person meeting on the day of the final.

Technology concerns: Although proctored Canvas exams with Respondus Monitor will likely work for almost all students enrolled in ECO 383, if your situation makes this arrangement infeasible, please contact me as soon as possible so that we can make alternative arrangements. I can be reached at aaron@uky.edu.

Submission of Assignments

Any 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 if submission cannot be met by the deadline. For students with an unexcused absence, late assignments will not be accepted. There will be no assigned homework; however, practice problems will be distributed on Canvas. These problems will help you prepare for the quizzes and exams.

Grading Scheme

A grading curve will be applied; historically, 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

Students are strongly encouraged to attend every lecture and review the assigned lecture notes in advance. Many of the readings – especially the academic readings – will be easier to understand with attendance. However, no credit will be given for attendance.

AI Use - Level 3: Open Use This course permits and encourages the use of generative AI tools to support your learning, as proficiency with these tools is a valuable professional skill. You may use AI for research, drafting, data analysis, and problem-solving. With this freedom comes responsibility: you must critically evaluate and verify any content an AI provides, as these tools can make mistakes (“hallucinations”). You must also cite any AI contribution that is directly quoted or heavily paraphrased in your work. For assignments that explicitly require AI, you will need to document your process (e.g., prompts used). Always be mindful of data privacy; do not input personal or confidential information into public AI services. Any academic dishonesty, such as presenting unverified or uncited AI work as your own, will be handled per University policy. If you have any questions about what is allowed, please ask me in advance. Students can sign up for the no-cost web versions of tools such as ChatGPT, Gemini, and Claude, and every @uky.edu account includes Microsoft 365 Copilot Chat (available at m365.cloud.microsoft/chat).

Academic Policy Statements A full list of UK academic policies is available at https://provost.uky.edu/proposals/guidancecourse-proposals/standard-academic-policy-statements (updated link). This covers Excused Absences and Acceptable Excuses, Religious Observances, Verification of Absences, Making Up Graded Work, Excused Absences for Military Duties, Unexcused Absences, Prep Days and Reading Days, Homework During Finals Week, Accommodations Due to Disability, Non-Discrimination Statement and Title IX Information, and Regular and Substantive Interactions.

Academic Offenses (Cheating, Plagiarism, and Falsification or Misuse of Academic Records) UK policies on academic offenses are available at https://provost.uky.edu/proposals/guidance-course-proposals/academic-offenses. For a thorough description of “plagiarism,” see https://ombud.uky.edu/students/what-plagiarism. For a thorough description of “cheating,” see https://ombud.uky.edu/students/what-cheating.

Resources The university offers a variety of resources available to students. Visti the Office of Student Success ( https://studentsuccess.uky.edu/get-help )to access the full list.

Classroom Emergency Preparedness and Response

Please see the following link for information related to emergency reporting and action: https://provost.uky.edu/curriculumproposals/syllabus-information.

Course Schedule, ECO 383-001, Fall 2025

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