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ECON-312A: Health Economics Spring 2015

Class meets: Tuesday and Thursday, 2:35pm-03:50pm, Calhoun Hall 423 Professor: Peter Savelyev (peter.savelyev@vanderbilt.edu) Office Phone: 615-322‐1529 Office Location: Calhoun 302B (If I am not in 302B check the nearby RA room 304) Office Hours: Wednesdays: 1.40–3.10pm, Fridays: 4.40–6.20pm

TA: Ben Ward (benjamin.c.ward@vanderbilt.edu) Office Hours Room: Calhoun 116A Office Hours: 11-12 Mondays and 4:30-5:30 Tuesdays Short description: Conceptual and empirical analysis of the origins of health attributes; joint

investments in skill and health capitals; health-related consumption and lifestyles; the value of health, life, and medical innovation; the demand for health insurance; and the supply of health care. Applied econometrics methods are a major part of the course, with a particular emphasis on comparisons among alternative methods used in health economics research.

Short Introduction: Health economics is a rapidly growing field of applied economic research. Since

U.S. health spending has reached as much as 1/6th of the GDP and continues to grow, health economics research is becoming increasingly socially important. As a result, the demand for economists with expertise in health economics is strong and growing. Multiple employers such as economics departments, policy schools, medical schools, the government, international organizations, and the private sector hire experts in health economics. This course will emphasize skills that are needed to write and present original research papers. To enhance skills essential for active research in an applied and policy-oriented area, students will be asked to write an original short essay with policy implications on a relevant issue in health economics. The quality of essays deserving an excellent grade is expected to be comparable to at least the quality of introductions to papers published in journals such as Health Economics or Journal of Health Economics. The aim of the short essay is to boost creative thinking, enhance writing skills, and create a seed for a possible future research paper. Students will also be asked to present a published research paper in class.

About me: My primary research interests are in the field of health economics and the

emerging fields of the economics of human development and economics of personality. Prior to coming to Vanderbilt, I worked with Jim Heckman and other

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co-authors at the University of Chicago on a reanalysis of the Perry Preschool Project.

Sequence: This course (312B) can be taken as a part of the Health Economics

sequence. Another course in the sequence (“Topics in Health Economics”, Econ 312A) is taught by Professor Kitt Karpenter.

Reading: There is no required textbook. We will study the research papers listed below in

this syllabus (for copies of papers see the course page on www.vanderbilt.edu/oak). A Table below shows which papers are compulsory. I will make my lecture slides available through OAK. A helpful introductory supplementary reading is Health Economics by Charles Phelps, 5th edition. The Handbook of Health Economics in two volumes edited by Culyer and Newhouse (2000) makes a great advanced supplementary reading. The Handbook can be found in the Central library with codes RA410.H255 2000 v.1A for the first volume and RA410.H255 2000 v.1B for the second volume. Some of you may find the Handbook helpful for working on your short paper.

Grading Scale: Three home assignments, 30% (10% each) Presentation of a published paper in class, 10% A short research paper, 20% Presentation of your short research paper in class, 10% Final exam, 30% In addition, persistent and relevant participation in class discussions on top of

excellent attendance will result in a higher grade in marginal cases (e.g., an A instead of A- if your score is close enough to an A)

Presentation: You will present a published paper (see “important dates” section below for a

time-table). You can chose to present any paper denoted with “*.” Please, choose based on your interests and curiosity thus contributing to the diversity of topics discussed in class. See the Table below for a summary of types of papers in the reading list.

Status of Papers from the List by the Number of Asterisks

Marking of papers Can be chosen by students for class presentations (one talk per student)

Compulsory reading

** No

Yes

* Yes Only those chosen by students for class presentations

[no asterisk] No No

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The TA will post a spreadsheet online where students will be able to post the

paper of their choice and the chosen date of their presentation. You may not present a paper that another student has already chosen, so please check the spreadsheet right before posting your choice to make sure the paper is still available.

The difference between presenting your paper and somebody else’s paper is that

possible failures of the paper are not your fault. Moreover, you are expected to critically comment on the paper while presenting it. A successful presentation should satisfy three criteria:

(1) Excellent knowledge and understanding of the presented paper; ability to

answer questions about the paper

(2) Good and original critical comments about the paper (depending on quality of the paper, your list of critical comments may be longer or shorter, but remember that no research paper is perfect)

(3) Clear, well-structured, well-presented, and informative talk that is finished

on time

At least one day before your talk, please share your slides with everybody related to this class including myself and the TA. It is possible to share things on OAK, and the TA can help organizing this. It is fine to us e-mail as well.

Short Paper: Write no more than four pages of a high quality non-technical1 analytic health

economics paper (12pt font, double-spaced). As authors do in introduction sections of their technical research papers, express all your ideas clearly in words. The aim of the paper is to boost creative and policy-relevant thinking, enhance your writing skills, and create a seed for a possible future research paper. References, figures, tables, and other possible supporting materials are not included into the four-page limit. Place references after the text in a single-spaced reference list. There is no limit on the number of tables, figures, or supplementary materials as long all of them are sufficiently discussed and cited by number in your paper. Please argue why your paper is important, novel, and policy-relevant and how your paper relates to the literature. If your paper implies an empirical investigation (implemented or planned), explain your model identification strategy. The quality of essays deserving an excellent grade is expected to be comparable to at least the quality of introductions to papers published in journals such as Health Economics or Journal of Health Economics.2

Those students who already have some version of a relevant research paper by the

time they start the class are permitted to continue their work on the paper as long 1 There is no need to write a formal model, an econometric model, a theorem proof, and the like. Original empirical results are welcomed but not required for an excellent grade. 2 The difference between your paper and an introduction is that you are encouraged to introduce sections and to discuss your supporting materials such as tables and figures if you have any.

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as they demonstrate a substantial progress. To prove that the progress was indeed substantial, students continuing their work on the paper need to submit three documents at the paper deadline (see the list of important dates below): (1) the short paper as required; (2) a version of their paper in progress as it was by the time this class started; (3) a cover letter arguing why their progress over the semester was so substantial that it can be compared with work of students who started from scratch. In this case, the short paper can include old results, but the cover letter must clearly specify which results were obtained before the class started and which results were obtained during the semester.

Students need to submit both hard and electronic copies of their papers. I would

appreciate if all papers are transferred to the PDF format.3 Since the quality of your writing and oral presentation may affect your grade,4

you may find it useful to read a short paper “Writing Tips for Ph. D. Students” by John H. Cochrane for advice about writing and presenting a paper in economics. Other excellent books on writing include “Economical Writing” by Deirdre McClosky and “Style” by Joseph Williams (9th edition).

Home Assignment: There will be three home assignments (see the list of important dates below). One

of the aims of home assignments is to make students familiar with the types of questions that may appear on the final exam. Students are encouraged to form groups of two or three and submit one work from each group. For the best exam preparation students are advised to take active part in solving all questions and use this opportunity to learn from peers.

Final Exam: There will be a 2-hour final exam testing your knowledge of the required reading,

materials from lectures, and key results of the published papers that were presented by students in class. It is expected that students will show familiarity with both theoretical and empirical analysis in the field, as well as competence in analyzing economic problems particular to the field.

Abstract: A short paper preliminary title and a 100-150-word preliminary abstract are due

early in the semester to encourage a quick start (see the list of important dates below). Please mention in your abstract why your paper is important and original, and which policy implications you expect to derive from your analysis. Soon after the abstract submission you will need to present your ideas in class (see the list of important dates).

Important Dates:

January, 6: the first class January, 13: the first home assignment is out on OAK January, 20: the first home assignment is due in class January, 22, 12.30pm: deadline for using an online spreadsheet to choose a paper

to present in class and chose dates for your talks 3 Consider installing a free PDF printer such as Bullzip, which transfers any of your documents into PDF. 4 I will not evaluate your English directly, but unclear papers resulting from poor writing skills will get lower scores. Remember that people often get rejected in journals and fail on the job market just because of their poor writing skills.

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January, 27: the second home assignment is out on OAK February, 3: the second home assignment is due in class February 12: Preliminary title and abstract for your short paper due in class February 26: Discussion of each of the preliminary research papers in class (using

slides or handouts is not required but is highly encouraged to make your presentation more efficient)

March 3, 5: No class (spring break) March 10, 12, 17: Students’ presentations of published papers (please, use the

slide projector) March, 17: the third home assignment is out on OAK March, 24: the third home assignment is due in class April 2, 7, 14: Students’ presentations of their own research papers (please, use

the slide projector) April 9: no class, I am away at a conference April, 16: the final version of your paper due in class (a hard copy) and the same

version by e-mail (CC to the RA) any time the same day (a PDF file) April, 16: the last class (a lecture) April 30, Th, 9am-11am: final exam

Computer policy: I allow the use of laptops and other electronic devices in class, but only for

course-related purposes such as taking notes or reading electronic handouts.

Feedback: I highly encourage you to provide me with a feedback on how to improve this relatively new course.

Honor Code: I expect students to follow the Vanderbilt Honor Code. In particular, your short

paper should be an original work citing all sources of information and ideas. See the Honor Council website for more information http://www.vanderbilt.edu/HonorCouncil.

Topic Outline:

Notation: **– papers that cannot be chosen by students for a class presentation but are required for reading. Many of those are presented in class by the professor. *– papers that can be chosen by students for a class presentation. Once a paper is chosen by a student it becomes required reading for the whole class. No asterisk – other suggested reading that cannot be chosen by students for a class presentation and are not required reading. The set of papers without the asterisk for this course changes from year to year and has no relationship to the importance of the paper. Some very important papers may have no asterisk. Rather, in different years we explore various direction of research by assigning “*” and “**” to specific group of papers. 1 Introduction

*Arrow K.J., 1963, “Uncertainty and the Welfare Economics of Medical Care,” American Economic Review, 53(5): 941-973.

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**Becker G., 2007, Health as Human Capital: Synthesis and Extensions, Oxford Economic Papers, 59(3):379-410. Culyer and Newhouse, 2000, “State and Scope of Health Economics,” Handbook of Health Economics, 1A: 1-8

Emanuel E.J., Fuchs V.R., 2005, “Health Care Vouchers—A Proposal for Universal Change,” New England Journal of Medicine, 352:1255-1260.

**Fuchs V., 1996, “Economics, Values, and Health Care Reform,” American Economic Review, 86(1): 1-24. Fuchs V., 2000, “The Future of Health Economics,” Journal of Health Economics, 19: 141-157.

*Glied S.A., 2008, “Universal Coverage One Head at A Time--The Risks and Benefits of Individual Health Insurance Mandates,” New England Journal of Medicine. 358(15):1540-1542.

*Gruber J., 1994, “The Incidence of Mandated Maternity Benefits,” American Economic Review, 84 (3): 622-641.

2 Determinants of Health and Longevity

*Almond D., Chay K.Y., Lee D.S., 2005, “The Costs of Low Birth Weight,” Quarterly Journal of Economics, 120(3): 1031-1083.

*Martha J. Bailey and Andrew Goodman-Bacon. The War on Poverty’s Experiment in Public Medicine: Community Health Centers and the Mortality of Older Americans. American Economic Review. 2015, 105 (3): 1067-1104. Kasey Buckles, Andreas Hagemann, Ofer Malamud, Melinda S. Morrill, Abigail K. Wozniak. The Effect of College Education on Health. NBER Working Paper 19222. Online version: http://www.nber.org/papers/w19222

*Anne Case, Christina Paxon, 2011. The Long Reach of Childhood Health and Circumstance: Evidence from the Whitehall II Study. The Economic Journal, 121, F183-F204.

Gabriella Conti, James J. Heckman, 2010. Understanding the Early Origins of the Education-Health Gradient : A Framework That Can Also Be Applied to Analyze Gene -Environment Interactions. Perspectives on Psychological Science 2010 5: 585. Online version: http://pps.sagepub.com/content/5/5/585

Gabriella Conti, James Heckman, and Sergio Urzua. The Education-Health Gradient. American Economic Review: Papers & Proceedings 100 (May 2010): 234–238. Online version: http://www.aeaweb.org/articles.php?doi=10.1257/aer.100.2.234

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*Cutler, Deaton and Lleras-Muney, 2006, “The Determinants of Mortality,” Journal of Economic Perspectives, 20(3): 97-120. *Ding Weili, Steven F. Lehrer, J. Niels Rosenquist, and Janet Audrain- McGovern, 2009, “The Impact of Poor Health on Academic Performance: New Evidence Using Genetic Markers,” Journal of Health Economics, 28: 578-597. *Dow W.H., Philipson T.J, and Sala-i-Martin X., 1999, “Longevity Complementarities under Competing Risks,” American Economic Review, 89.5: 1358-1371.

**Kenkel D., 1991, Health Behavior, Health Knowledge, and Schooling, Journal of Political Economy, 99(2):287-305. Lleras-Muney A., 2005 “The Relationship between Education and Adult Mortality in the United States,” Review of Economic Studies, 72: 189-221.

Savelyev Peter, 2014, “Socio-Emotional Skills, Education, and Longevity of High Ability Individuals,” Unpublished manuscript, Vanderbilt University, Department of Economics. https://my.vanderbilt.edu/petersavelyev/publications/ Peter Savelyev and Kegon Tan, 2014. Personality, Education, and Health-Related Outcomes of High-Ability Individuals. Unpublished manuscript, Vanderbilt University, Department of Economics. https://my.vanderbilt.edu/petersavelyev/publications/

*Smith, 1999, “Healthy Bodies and Thick Wallets: The Dual Relationship Between Health and Economic Status,” Journal of Economic Perspectives, 13(2): 145-166. *Snyder and Evans, 2006, “The Effect of Income on Mortality: Evidence from the Social Security Notch,” Review of Economics and Statistics, 88 (3): 482-495.

3 Demand for Health and Medical Care

Deaton A., 2002, “Policy Implications of the Gradient of Health and Wealth,” Health Affairs, 21(2): 13-30. *Ehrlich I, Chuma H., 1990, “A Model of the Demand for Longevity and the Value of Life Extension,” Journal of Political Economy, 98(4): 761-782.

Fuchs V., 1982, “Time Preference and Health: An Exploratory Study”, In Economic Aspects of Health, V. Fuchs, ed. Chicago: University of Chicago Press.

*Galama, T.J. and van Kippersluis, H., 2010, “A Theory of Socioeconomic Disparities in Health over the Life Cycle,” RAND Corporation (WR-773).

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**Galama, T.J. and van Kippersluis, H., 2010, “A Theory of Education and Health,” USC, unpublished manuscript.

*Galama, T.J., 2014, “A Contribution to Health Capital Theory,” USC, unpublished manuscript.

Donna Gilleskie. A Dynamic Stochastic Model of Medical Care Use and Work Absence. Econometrica, Vol. 66, No. 1, (Jan., 1998), pp. 1-45

*Goodman A.C., Stano M., Tilford J.M., 1999, “Household Production of Health Investment: Analysis and Applications,” Southern Economic Journal 65:791-806. Grossman M., 1972, “On the Concept of Health Capital and the Demand for Health,” Journal of Political Economy 82:223-255. Grossman M., 2004, “The Demand for Health, 30 Years Later: A Very Personal Retrospective and Prospective Reflection,” Journal of Health Economics 23(4):629-636. *Leibowitz A.A., 2004, “The Demand for Health and Health Concerns after 30 Years,” Journal of Health Economics 23(4):663-672.

Meara E., White C., Cutler D.M., 2004, “Trends in Medical Spending by Age”, Health Affairs 23(4): 176-183. Mechanic D., 2002, “Disadvantage, Inequality, and Social Policy,” Health Affairs 21(2):48-59. *Newhouse J.P., 2004, Consumer-directed Health Plans and the RAND Health Insurance Experiment. Health Affairs 23(6):107-113. *Ruhm C., 2000, “Are Recessions Good for Your Health?” Quarterly Journal of Economics, 115(2): 617-650. *Galama Titus and Kapteyn Arie, 2011, “Grossman's Missing Health Threshold,” Journal of Health Economics, 30(5):1044-1056.

4 Health Behaviors

*Avery, R.J., D.S. Kenkel, D.Lillard, and A. Mathios, 2007, “Private Profits and Public Health: Does Advertising Smoking Cessation Products Encourage Smokers to Quit?” Journal of Political Economy 115 (3): 447-481.

*Cawley, John, and Christopher J. Ruhm, 2012, “The Economics of Risky Health Behaviors.” Chapter 3 in: Thomas G. McGuire, Mark V. Pauly, and Pedro Pita

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Barros (editors), Handbook of Health Economics, Volume 2. (Elsevier: New York). pp. 95-199. *Cawley, John. "The Impact of Obesity on Wages," 2004, Journal of Human Resources, 39(2): 451-474 *DeCicca, P, D.S. Kenkel, and and A. Mathios, 2002, "Putting Out the Fires: Will Higher Taxes Reduce the Onset of Youth Smoking?" Journal of Political Economy. 110 (1): 144-169.

**Becker, Grossman, and Murphy, 1991, “Rational Addiction and the Effect of Price on Consumption,” The American Economic Review, 81(2): 237-241.

*Cutler D.M., Glaeser E. 2005, “What Explains Differences in Smoking, Drinking, and Other Health-Related Behaviors?” American Economic Review, 95(2): 238-242. *Burkhauser, Richard V., and John Cawley. "Beyond BMI: The Value of More Accurate Measures of Fatness and Obesity in Social Science Research." Journal of Health Economics, 2008, 27(2): 519-529 **Gary S. Becker, Kevin M. Murphy, Michael Grossman, 2006, “The Market for Illegal Goods: The Case of Drugs,” Journal of Political Economy, Vol. 114, No 1, pp. 38-60. *Mokdad A.H., Marks J.S., Stroup D.F., and Gerberding J.L., 2004, “Actual Causes of Death in the United States, 2000,” JAMA 291: 1238-1245. and Mokdad AH, Marks JS, Stroup DF, and Gerberding JL., 2005, “Correction: Actual Causes of Death in the United States, 2000,” JAMA 293(3): 293.

5 Value of Health and Life

*Becker G., Murphy K., Philipson T., 2007, “The Value of Life Near it End and Terminal Care,” NBER Working Paper No. 13333. Becker G., Philipson T., Soares R., 2005, “The Quantity and Quality of Life and the Evolution of World Inequality,” American Economic Review, 95: 277-291. *Hall R.E., Jones C.I., 2007, “The Value of Life and the Rise in Health Spending,” Quarterly Journal of Economics, 122(1): 39-72. **Murphy K., Topel R., 2006, “The Value of Health and Longevity,” Journal of Political Economy, 114(5): 871-904. *Viscusi W. K., 1993, “The Value of Risks to Life and Health,” Journal of Economic Literature, 31: 1912-1946.

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**Viscusi W. K., 2013. Estimating the Value of a Statistical Life Using Census of Fatal Occupational Injuries (CFOI) Data. Working paper, Vanderbilt University. Forthcoming in Monthly Labor Review. W. Kip Viscusi, 2005. The Value of Life (a working paper for the article in the New Palgrave Dictionary of Economics). http://www.law.harvard.edu/programs/olin_center/papers/pdf/Viscusi_517.pdf

Memorandum to Secretarial Officers Modal Administrators from Polly Trottenberg, Under Secretary for Policy, and Robert S. Rivkin, General Counsel, Guidance on Treatment of the Economic Value of a Statistical Life in U.S. Department of Transportation Analyses, Office of the Secretary of Transportation, U.S. Department of Transportation, 2013. Available at http://www.dot.gov/office-policy/transportation-policy/guidance-treatment-economic-value-statistical-life.

6 Demand for Health Insurance, Moral Hazard and Adverse selection

*Abbring, J.H., Chiappori, P., Heckman, J., and Pinquet, J., 2003, “Adverse Selection and Moral Hazard in Insurance: Can Dynamic Data Help to Distinguish,” Journal of the European Economic Association. 1(1-3): 512-521. *Arrow, 1963, “Uncertainty and the Economics of Medical Care,” American Economic Review, 53: 941-973.

Blumenthal D., 2006, “Employer-Sponsored Insurance -- Riding the Health Care Tiger,” New England Journal of Medicine, 355(2): 121-123.

*Buchmueller and Dinardo, 2002, “Did Community Rating Induce an Adverse Selection Death Spiral? Evidence from New York, Pennsylvania and Connecticut,” American Economic Review, 92(1): 280-294.

*Chiappori P.A., Durand F. and Geoffard P.Y., 1998, “Moral Hazard and the Demand for Physician Services: First Lessons from a French Natural Experiment,” European Economic Review, 42: 499-511.

*Cutler D. and Reber, S., 1998, “Paying for Health Insurance the Trade--‐ off between Competition and Adverse Selection,” Quarterly Journal of Quarterly Journal of Economics, 133: 432-466.

*De Meza, D. and Webb, D., 2001, “Advantageous Selection in Insurance Markets,” RAND Journal of Economics, 32(2), 249-262.

*Doyle, 2005, “Health Insurance, Treatment and Outcomes: Using Automobile Accidents as Health Shocks,” Review of Economics and Statistics, 87(2): 256-270.

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*Liran Einav, Amy Finkelstein, Stephen P. Ryan, Paul Schrimpf, and Mark R. Cullen. Selection on Moral Hazard in Health Insurance. American Economic Review 2013, 103(1): 178–219

*Ellis, RP and Manning WG, 2007, “Optimal Health Insurance for Prevention and Treatment,” Journal of Health Economics 26(6): 1128-1150.

*Ellis and McGuire, 1996, “Hospital Response to Prospective Payment: Moral Hazard, Selection, Practice-Style Effects,” Journal of Health Economics 15: 257-277. Feldman R. and Dowd B., 1991, “A New Estimate of the Welfare Loss from Excess Health Insurance,” American Economic Review, 81(10): 291-301. *Hackman, Martin B., Jonathan T. Kolstad, and Amanda E. Kowalski. Averse Selection and an Individual Mandate: When Theory Meets Practice. American Economic Review, March 2015, Vol. 105 (3). pp. 1030-1066 *Harris, 1977, “The Internal Organization of Hospitals: Some Economic Implications,” Bell Journal of Economics, 8:467 – 482.

**Manning, Willard G., Joseph P. Newhouse, Naihua Duan, Emmett B. Keeler and Arleen Leibowitz, 1987, “Health Insurance and the Demand for Medical Care: Evidence from a Randomized Experiment,” American Economic Review 77(3): 251-277.

*Nyman, J., 1999, “The Economics of Moral Hazard Revisited,” Journal of Health Economics, 18:811-824.

*Norton and Staiger, 1994, “How Hospital Ownership Affects Access to Care for the Uninsured,” RAND Journal of Economics, 25: 171 – 185.

*Pauly M., 1968, “The Economics of Moral Hazard: Comment,” American Economic Review, 58: 531-537.

*Pauly M., 1974, “Over-insurance and Public Provision of Insurance: the Roles of Moral Hazard and Adverse Selection,” Quarterly Journal of Economics, 88 (1): 44-62.

Rothschild, Michael and Joseph Stiglitz, 1976, “Equilibrium in Competitive Insurance Markets: An Essay on the Economics of Imperfect Information,” Quarterly Journal of Economics, 90(4): 629-649.

*Simon, K., 2005, “Adverse Selection in Health Insurance Markets? Evidence from State Small-Group Health Insurance Reforms,” Journal of Public Economics, 89:1865-1877.

*Wilson, C., 1979, “Equilibrium and Adverse Selection,” American Economic Review, 69(2): 313-317.

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7 Health Insurance and Labor Markets

*Cutler D., Madrian B.C., 1998, “Labor Market Responses to Rising Health Insurance Costs: Evidence on Hours Worked,” RAND Journal of Economics, 29(3): 509-530 *Gruber J., Madrian B.C., 2002, “Health Insurance, Labor Supply and Job Mobility: A Critical Review of the Literature,” NBER Working Paper 8817. *Thomasson M.A., 2003, “The Importance of Group Coverage: How Tax Policy Shaped U.S. Health Insurance,” American Economic Review, 93(4): 1373-1384. **Summers L., 1989, “Some Simple Economics of Mandated Benefits,” American Economic Review, 79(2): 177-183.

8 Supply of Health Care: Hospitals and Physicians

*Abraham, Jean Marie, Martin Gaynor and William B. Vogt., 2003, “Entry and Competition in Local Hospital Markets,” CMPO Working Paper, Series No. 03/088.

*Douglas Almond, Joseph J. Doyle, Amanda Kowalski, and Heidi Williams. "Estimating Marginal Returns to Medical Care: Evidence from At-risk Newborns." Quarterly Journal of Economics. May 2010. Vol. 125, No. 2: 591-634

Buchmueller and Feldstein, 1996, “Consumers Sensitivity to Health Plan Premiums – Evidence from a Natural Experiment In California”, Health Affairs, 15(1): 143-151. *Buchmueller and Feldstein, 1997, “The Effect of Price on Switching Among Health Plans”, Journal of Health Economics, 16(2): 231-247. *Card, D., Dobkin, C., and N. Maestas, 2008, “The Impact of Nearly Universal Insurance Coverage on Health Care Utilization: Evidence from Medicare,” American Economic Review, 98(5): 2242–2258.

*Chandra, A. and D. Staiger, 2007, “Productivity Spillovers in Health Care: Evidence from the Treatment of Heart Attacks,” Journal of Political Economy, 115(1):103-140.

*Ellis and McGuire, 1996, “Hospital Response to Prospective Payment: Moral Hazard, Selection, Practice-Style Effects,” Journal of Health Economics 15: 257-77. Fuchs, V., 1978, ‘The Supply of Surgeons and The Demand for Surgical Operations’, Journal of Human Resources, 13, Supplement, 35-66.

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*Gaynor, M. 2006, “What do we know about Competition and Quality in Health Care Markets?” NBER Working Paper, No.12301. *Glied and Zivin, 2002, “How Do Doctors Behave When Some (but not all) of Their Patients Are in Managed Care?” Journal of Health Economics, 21: 337-353. Harris, 1977, “The Internal Organization of Hospitals: Some Economic Implications,” Bell Journal of Economics, 8:467 – 482. *Kate Ho and Ariel Pakes. Hospital Choices, Hospital Prices, and Financial Incentives to Physicians. American Economic Review 2014, 104(12): 3841–3884 *Kessler, David and Mark McClellan, 2000, “Is Hospital Competition Socially Wasteful?” Quarterly Journal of Economics, 115(2): 577-615. *Jonathan T. Kolstad and Amanda Kowalski. "The Impact of Health Care Reform on Hospital and Preventive Care: Evidence from Massachusetts." Journal of Public Economics. December 2012. Vol. 96. 909-929. *Norton and Staiger, 1994, “How Hospital Ownership Affects Access to Care for the Uninsured,” RAND Journal of Economics, 25: 171 – 185. *Sarah L. Taubman, Heidi L. Allen, Bill J. Wright, Katherine Baicker, Amy N. Finkelstein. Medicaid Increases Emergency-Department Use: Evidence from Oregon's Health Insurance Experiment. Science, 2014. Vogt, W. and Town, R. 2006, “How Has Hospital Consolidation Affected the Price and Quality of Hospita Care?” RWJ Research Synthesis, No.9. Weeks, William B, and Amy Wallace, 2002a, “The More Things Change: Revisiting a Comparison of Educational Costs and Incomes of Physicians and Other Professionals,” Academic Medicine, 77(4): 312-331.

Weeks, William B, and Amy Wallace, 2002b, “Financial returns on specialty training for surgeons.” Surgery, 132(5): 795-802. *Weisbrod,1991, “The Health Care Quadrilemma: An Essay on Technological Change, Insurance, Quality of Care, and Cost Containment,” Journal of Economic Literature, 29: 523-552.

I reserve the right to alter the form and content of the course in order to adjust to the

needs and level of students enrolled in the class

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