Health Economics (MS HCA, RIC)
Health Economics (MS HCA, RIC)
This page has information about the course MS HCA Health Economics. If you would like more information, or would like to discuss anything you read on this page, please do not hesitate to reach out.
Course Description
Health economics studies how individuals and firms make decisions in the healthcare marketplace when healthcare resources are scarce. This course is designed to introduce you to the major theoretical issues and empirical findings in health economics. Students will examine the healthcare industry from an economic perspective, including demand, insurance, supply constraints, and the role of the U.S. government.
This course is a requirement for the M.S. Healthcare Administration program.
Learning Objectives
At the end of the course, students should achieve the following capabilities:
Understand health economics concepts and principles.
Compare healthcare systems between the US and other countries.
Analyze demand, supply, and elasticities in healthcare markets.
Apply utility theory to healthcare decision-making.
Evaluate health production and determinants.
Examine the Grossman Model and demand for health.
Understand health insurance concepts and effects.
Apply tools to cost-benefit analysis.
Analyze physician industry behavior models.
Investigate the dynamics of the hospital industry.
Explore the government's role in healthcare.
Understand the economics of health behaviors in the context of addictive behaviors.
Prerequisite(s)
To enroll in this course, students must meet the formal program requirements and have the quantitative preparation needed for graduate-level work in health economics.
Required prerequisites:
· Acceptance into the HCA graduate program and completion of HCA 502, or permission of the program director.
· Working knowledge of algebra.
Recommended background:
A background in Principles of Microeconomics is helpful. Students who would like a refresher are encouraged to consult Principles of Microeconomics by Greenlaw and Shapiro, a free open-source textbook available via CLICK HERE.
Required Materials
The Economics of Health and Health Care by Sherman Folland, Allen C. Goodman, and Miron Stano (any edition of the book is fine)
Papers are assigned throughout the course and presented by students.
Technological Needs
Calculator may be helpful
Access to Excel (required for assignments and in-class exercises)
Course Topics
Healthcare in the United States
Consumer Choice Theory
Elasticities of Demand
Production
Demand for Health and Grossman Model
Expected Utility Theory
Health Insurance
Cost-Benefit Analysis
Health Financing, Physician Industry, & Model of Behavior
Hospital Industry
Pharmaceutical Industry
Role of Government and Externalities
Grading
Microeconomics Take-Home Exam: 15%
In-class Midterm Exam: 25%
In-class Final Exam: 25%
Problem Sets: 20%
Paper Presentations: 15%
Paper #1: Capps, C., Dranove, D., & Ody, C. (2018). The effect of hospital acquisitions of physician practices on prices and spending. Journal of health economics, 59, 139–152.
Paper #2: Manning, W. G., Newhouse, J. P., Duan, N., Keeler, E. B., & Leibowitz, A. (1987). Health insurance and the demand for medical care: evidence from a randomized experiment. The American economic review, 251-277.
Paper #3: Ellis, R. P., Martins, B., & Zhu, W. (2017). Health care demand elasticities by type of service. Journal of health economics, 55, 232-243.
Paper #4: Diaz, M. C., Kierstead, E. C., Khatib, B. S., Schillo, B. A., & Tauras, J. A. (2023). Investigating the impact of e-cigarette price and tax on e-cigarette use behavior. American Journal of Preventive Medicine, 64(6), 797-804.
Paper #5: Bhattacharya, J. & Lakdawalla, D. (2006). The Labor Market Value of Health Improvements. Forum for Health Economics & Policy, 9(2).
Paper #6: Sirisankanan, A., Kananurak, P., & Yoongthong, T. (2026). Does health insurance increase health care utilization? evidence of ex-post moral hazard from the Social Security Scheme in Thailand. Health Policy and Planning, czag072.
Paper #7: Zhang, Q. (2025). Physician agency in China: evidence from physicians’ responses to financial pressure during the COVID-19 pandemic. Health Economics Review, 15(1), 102.
Paper #8: Ho, V., Ku‐Goto, M. H., & Jollis, J. G. (2009). Certificate of need (CON) for cardiac care: controversy over the contributions of CON. Health services research, 44(2p1), 483-500.
Paper #9: Cantor, J. H., Horwitz, J., Whaley, C. M., & Yu, A. (2025). The Relationship Between Certificate of Need Laws and Mortality (No. w34403). National Bureau of Economic Research.
Paper #10: Pacula, R.L., Lundberg, R. Why Changes in Price Matter When Thinking About Marijuana Policy: A Review of the Literature on the Elasticity of Demand. Public Health Rev 35, 2 (2013).