Health Economics and Policy

This course provides an introduction to health economics and the economic analysis of health care systems. It examines how individuals, providers, insurers, and governments make decisions in the presence of scarcity, uncertainty, and information asymmetries. Topics include the demand for health and health care, health insurance and moral hazard, provider behaviour, market power, efficiency and equity in health care markets, health system organisation, and government intervention. The course combines economic theory with empirical evidence to develop a framework for analysing health policies and evaluating the performance of health care systems.

Course content

• Introduction to health economics and the distinctive features of health care markets
• Demand, supply, and welfare analysis in health care markets
• Consumer choice, patient preferences, and the demand for health care
• Demand for health and determinants of health
• Uncertainty, risk, health insurance, and moral hazard
• Health care providers’ behaviour and supplier-induced demand
• Production, technology, and costs in health care
• Market power and efficiency in health care markets
• Welfare economics, equity, and inequality in health and health care
• Comparative analysis of health systems and health policies
• Government intervention in health care markets
• Provider payment and reimbursement mechanisms
• Population ageing and its implications for health care demand and supply

Upon successful completion of the course, students will be able to:

• Understand the economic principles underlying health, health care markets, and health systems;
• Analyze the demand for health and health care, the determinants of health, and consumer decision-making;
• Explain the role of uncertainty, health insurance, risk-sharing, and moral hazard in health care markets;
• Evaluate the behaviour of health care providers, including the effects of market power, incentives, and payment mechanisms;
• Assess efficiency, equity, and inequality in health care and discuss the rationale for government intervention;
• Compare alternative health system designs and critically evaluate health policies using economic reasoning and empirical evidence

• Good health and well-being
• Reduced inequalities

In presence

Lectures, class discussions, and practical exercises on selected topics, complemented by the analysis of empirical studies and policy cases.

Assessment is based on a student presentation (30%) and a written final examination (70%). The final exam consists of multiple-choice questions covering both theoretical concepts and quantitative applications discussed during the course. Students are expected to demonstrate their understanding of health economics principles and their ability to apply economic reasoning to the analysis of health care markets, health systems, and health policy issues.