Syllabus

Unit 1: Economics and Health Economics The Relevance of Economics in Health Care Micro Economics Tools in Health Economics A Simple Model of Demand, Supply and Price Determination, Elasticity of Demand, Applying Elasticity of Demand to Health Policy The Economics of Consumer Choice.

Unit2: Production function of Health, Production and the possibilities for Substitution, Deriving the Cost function, Technical and Allocative Inefficiency, The Theory of Firm Behavior

Unit 3: Economic Efficiency and Cost Effectiveness in Health Care Cost-Benefit Analysis (CBA) Cost Effectiveness Analysis (CEA), Cost Utility Analysis (CUA), Methods for Calculating QALYs and DALYs, Sen’s Capability Approach and QALYs.

Unit 4: The Changing World of Health Care Finance, Private Health Insurance, Social Health Insurance, Theory of Risk and Insurance, Health Insurance and Market Failure, The case of Moral Hazard,

Unit 5: The Impact of Economic Evaluation on Decision Making in Health Care, Government involvement in health care market, Public Good, Externalities, Tax Policy, Lessons for Public Health Policy.

To understand basic concepts of micro economics tools and its application in healthcare.

To discuss health production function and its application to the healthcare market.

To understand key aspects of economic evaluation in healthcare.

To discuss different types of private and social health insurance and the role of moral hazard in health insurance coverage and highlight the role of public health policy on healthcare utilization.

After completing the course, students will have competence to:
1. Apply microeconomics tools in the healthcare market.
2. understand the key inputs that determine the health status of a population at the national and global levels.
3. Acquire both theoretical and technical knowledge to do economic evaluation in healthcare.
4. Gain knowledge on various aspects of health insurance and its key determinants
5. Analyse impact of public health policy on healthcare utilization.

David Wonderling, Reinhold Gruen and Nick Black., Introduction to Health Economics, Open University Press

Sherman Folland, Allen Goodman and Miron Stano., Economics of Health and Health Care, Pearson/ Prentice Hall

Donaldson, C. and Gerard, K., Economics of Health Care Financing, Macmillan Press

Phillips, C., Health Economics: An Introduction for Health Professionals, Blackwell Publishers.