Graduate Health Economics Spring 2013
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1 TILBURG UNIVERSITY DEPARTMENT OF ECONOMETRICS AND OPERATIONS RESEARCH Instructor: N. Meltem Daysal Office: K625 Phone: Office Hours: TBA Lecture Time: TBA Lecture Location: TBA Course Webpage: TBA Graduate Health Economics Spring 2013 Course Description This course is part of the Empirical Microeconomics PhD sequence at Tilburg University. The set of 5 lectures focuses on two basic themes. The first part introduces the topic of health capital, the demand for and the production of health as well as modern determinants of health and health behavior. Within the theme, we discuss the broad literature investigating the impact of socio-economic factors on health and health behavior. We then turn to the role of information and advertising in shaping health behaviors and how time preferences impact individuals response to new information. We also discuss how an individual s social and macroeconomic environment affects their health through changes in health behavior. Our discussion on peer effects briefly touches on issues related to risky behavior. We conclude the first part with a discussion on the impact of early life conditions on later life health. Having discussed the determinants of health and health behavior, the second part of the course focuses on the consequences of health and health behavior. We begin by discussing the impact of early life conditions on adult socio-economic outcomes. We then cover the literature on the impact of current health and health shocks on labor market outcomes. The final part of the theme is in part related to global health and examines the relationship between health and development with a particular emphasis on micro-studies. Given the time constraints, this course does not cover the delivery of health care. I strongly recommend any student who intends to write a dissertation in health economics to further study topics related to the delivery health care. These include health insurance (optimal insurance, moral hazard, adverse selection, health insurance and the labor market); social insurance (disability insurance, worker s compensation, public insurance); medical care markets (the health care work force, physician behavior, hospital behavior, competition in health care, medical malpractice) and R&D, innovation and medical productivity (innovation and medical cost growth, diffusion of technological development, returns to medical care, the pharmaceutical market). If you would like to get a reading list, please contact me. 1
2 Course Objectives This course is designed for PhD students specializing in health economics. However, since many of the subjects covered in the course lie at the intersection of health economics and other fields of applied microeconomics, and the included studies employ a rich set of tools and techniques, the course content would also be relevant for students specializing in other fields of applied microeconomics. The main objective of the course is to help students transition from being active learners to producers of research and to whet students appetite for conducting research on topics that are of interest to them. The course also aims to improve students presentation and communication skills. Textbook and Readings This course does not have a required textbook. However, I recommend the following reference books to anyone interested in the field of health economics. The best collection is Elsevier s Handbook of Health Economics. Volumes 1A and 1B (2000) of the series are edited by Anthony J. Culyer and Joseph P. Newhouse. The more recent Volume 2 (2012) is edited by Mark V. Pauly, Thomas G McGuire and Pedro Pita Barros. You can access the individual chapters of the series through ScienceDirect. Other useful references include the Oxford Handbook of Health Economics (2011) edited by Sherry Glied and Peter C. Smith, and the Elgar Companion to Health Economics (2006) edited by Andrew M. Jones. If you are new to the field and would like to have an undergraduate reference book, I recommend the Economics of Health and Health Care by Sherman Folland, Allen Goodman and Miron Stano. The last edition is 2012 but any edition would be fine. Course Evaluation The final grade will be based on: Attendance 5% Participation and Presentations 25% Final Exam 70% Given the limited number of lectures and the extent of the material that will be covered in each lecture, students should aim to attend all lectures. Select articles from the reading list will be assigned as required reading. Students are expected to come to class having read these articles along with a discussant presentation for each of them. The presentations should be prepared as if you are the discussant of the article at a conference: 5-7 minutes long, including an overview of the paper and your critique/comments. The presentations are intended to get you thinking critically about others work while helping you structure your thoughts and improve your communication skills. During each lecture, I will randomly select students to present their discussion of the papers. At the end of the 5 lectures, there will be a final exam. A Final Remark on Seminars Tilburg University hosts top-notch researchers from all around the world through different seminar series. I strongly recommend all PhD students to attend at least one seminar per week and to try to meet with the invited speakers. The vibrant seminar discussions provide a great opportunity to see how good papers are produced, to get new ideas and to get inspired to work your own research! 2
3 Preliminary Readings Overview of the Field of Health Economics Culyer AJ, Newhouse JP The State and Scope of Health Economics. In: Culyer and Newhouse (eds.) Handbook of Health Economics, Volume 1A. (New York: Elsevier), pp Fuchs V The Future of Health Economics. Journal of Health Economics, 19(2): Morrisey MA, Cawley J U.S. Health Economists: Who We Are and What We Do. Health Economics, 17(4): Writing an Empirical Research Paper Bem D Writing the Empirical Journal Article, Chapter 10 in Darley, Zanna and Roediger (eds.) The Compleat Academic: A Career Guide, 2nd edition. (Washington, DC: American Psychological Association). Gans JS, Sheperd GB How Are the Mighty Fallen: Rejected Classic Articles by Leading Economists, Journal of Economic Perspectives 8(1): Goldin C On Being Placement Director in a Buyer s Market. American Economic Association Committee on the Status of Women in the Economics Profession (CSWEP) Newsletter, Spring/Summer, pp Common Econometric Methods and Data Issues Evans WN, Levy H, Simon KI Research Data in Health Economics. Journal of Economic Perspectives, 14(4): Chapter 5 in Angrist, JD, Pischke J Mostly Harmless Econometrics: An Empiricist s Companion. Princeton University Press. Chapter 4 in Angrist, JD, Pischke J Mostly Harmless Econometrics: An Empiricist s Companion. Princeton University Press. Imbens GW, Angrist JD Identification and Estimation of Local Average Treatment Effects. Econometrica 62 (2): Angrist JD, Imbens GW. Imbens Two-Stage Least Squares Estimation of Average Causal Effects in Models with Variable Treatment Intensity. Journal of the American Statistical Association 90 (430): Lee DS, Lemieux T Regression Discontinuity Designs in Economics. Journal of Economic Literature 48 (2):
4 1. Determinants of Health and Health Behavior Health Capital and the Demand for Health Grossman M The Human Capital Model. Chapter 7 in: Culyer and Newhouse (eds.), Handbook of Health Economics, Volume 1 (New York: Elsevier), pp Gilleskie D Health Capital: Theory and Empirical Evidence. Chapter 3 in: Sloan and Kasper (eds.), Incentives and Choice in Health Care, pp Bolin K Health Production. Chapter 6 in: Glied and Smith (eds.), Oxford Handbook of Health Economics (New York: Oxford University Press), pp Education Income Currie J, Moretti E Mother s Education and the Intergenerational Transmission of Human Capital: Evidence from College Openings. Quarterly Journal of Economics, CXVIII(4): Lleras-Muney A The Relationship Between Education and Adult Mortality in the U.S. Review of Economic Studies, 72(1), Cutler D, Lleras-Muney A Understanding Differences in Health Behavior by Education. Journal of Health Economics, 29(1), Smith J Healthy Bodies and Thick Wallets: The Dual Relationship Between Health and Economic Status. Journal of Economic Perspectives, 13(2), Marmot The Influence of Income on Health: Views of an Epidemiologist. Health Affairs, 21(2), Lindahl M Estimating the Effect of Income on Health and Mortality Using Lottery Prizes as an Exogenous Source of Variation in Income. Journal of Human Resources, XL(1), Evans WN, Snyder S The Impact of Income on Mortality: Evidence from the Social Security Notch. Review of Economics and Statistics, 88(3),
5 Information & Advertising Calfee JE, Winston C, Stempski R Direct-to-consumer advertising and the demand for cholesterol-reducing drugs. Journal of Law and Economics, 45, Cutler DM, Huckman RS, Landrum MB The Role of Information in Medical Markets: An Analysis of Publicly Reported Outcomes in Cardiac Surgery. American Economic Review, 94, Avery R, Kenkel D, Lillard DR, Mathios A Private Profits and Public Health: Does Advertising of Smoking Cessation Products Encourage Smokers to Quit? Journal of Political Economy, 115(3): Bollinger B, Leslie P, Sorensen A Calorie Posting in Chain Restaurants. American Economic Journal: Economic Policy, 3(1): Time preferences Ehrlich I, Chuma H A Model of the Demand for Longevity and the Value of Life Extension. Journal of Political Economy, 98, Becker GS, Mulligan CB The Endogenous Determination of Time Preference. Quarterly Journal of Economics, 112, Laibson D Golden Eggs and Hyperbolic Discounting. Quarterly Journal of Economics, 112, Cutler DM, Glaeser E What Explains Differences in Smoking, Drinking, and Other Health-Related Behaviors? American Economic Review, 92(2): Peer Effects Deri C Social Networks and Health Service Utilization. Journal of Health Economics, 24, Powell LM., Tauras JA, Ross H The Importance of Peer Effects, Cigarette Prices and Tobacco Control Policies for Youth Smoking Behavior. Journal of Health Economics, 24, Lundborg P Having the Wrong Friends? Peer Effects in Adolescent Substance Use. Journal of Health Economics, 25, Clark AE, Loheac Y It wasn t me, it was them! Social influence in risky behavior by adolescents. Journal of Health Economics, 26, Fletcher JM Social Multipliers In Sexual Initiation Decisions Among U.S. High School Students. Demography, 44, Kremer M, Levy D Peer Effects and Alcohol Use among College Students. Journal of Economic Perspectives, 22,
6 The Macroeconomy Ruhm CJ Are Recessions Good For Your Health? Quarterly Journal of Economics, 115(2), Ruhm CJ, Black WE Does Drinking Really Decrease in Bad Times? Journal of Health Economics, 21: Ruhm CJ Good Times Make You Sick. Journal of Health Economics, 22(4), Ruhm CJ Healthy Living in Hard Times. Journal of Health Economics, 24(2), Cawley J, Simon KI Health Insurance Coverage and the Macroeconomy. Journal of Health Economics, 24(2): Ruhm CJ Macroeconomic Conditions, Health and Mortality, in Jones (ed.) Elgar Companion to Health Economics. Cheltenham, UK: Edward Elgar Publishing, pp Barker s Hypothesis I Barker DJP Fetal programming of coronary heart disease. TRENDS in Endocrinology & Metabolism, 13(9), Van den Berg GJ, Lindeboom M, Portrait F Economic Conditions Early in Life and Individual Mortality. American Economic Review, 96(1), Camacho A Stress and Birth Weight: Evidence from Terrorist Attacks. American Economic Review: Papers & Proceedings, 98(2), Case A., Paxson C Early Life Health and Cognitive Function in Old Age. American Economic Review Papers and Proceedings, 99(2), Banerjee AV, Duflo E, Postel-Vinay G, Watts T Long run health impacts of income shocks: Wine and phylloxera in 19th century France. Review of Economics and Statistics, 92(4), Mansour H, Rees DI Armed Conflict and Birth Weight: Evidence from the al- Aqsa Intifada. Journal of Development Economics, 99(1),
7 2. Consequences of Health and Health Behavior Barker s Hypothesis II Behrman JR, Rosenzweig MR Returns to birthweight. The Review of Economics and Statistics, 86(2), Case A, Fertig A, Paxson C The Lasting Impact of Childhood Health and Circumstance. Journal of Health Economics, 24(2), Almond D Is the 1918 Influenza Pandemic Over? Long-Term Effects of In Utero Exposure in the Post-1940 US Population. Journal of Political Economy, 114(4), Almond D, Edlund L, Palme M Chernobyl s subclinical legacy: Prenatal exposure to radioactive fallout and school outcomes in Sweden. Quarterly Journal of Economics, 124(4), Currie J, Stabile M., Manivong P, Roos L Child Health and Young Adult Outcomes. Journal of Human Resources, 45(3), Labor Market Outcomes Dora C Health and Labor Force Participation of Older Men, Journal of Economic History, 56, Currie J, Madrian B Health, Health Insurance and the Labor Market. Chapter 50 in: Ashenfelter and Card (eds.), Handbook of Labor Economics, Volume 3 (North Holland), pp Berndt E, Finkelstein S, Greenberg P, Howland R, Keith A, Rush AJ, Russell J, Keller M Workplace Performance Effects from Chronic Depression and Its Treatment. Journal of Health Economics, 17, Kahn ME Health and Labor Market Performance: The Case of Diabetes. Journal of Labor Economics, 16, Bradley CJ, Neumark D, Bednarek HL, Schenk M Short-Term Effects of Breast Cancer on Labor Market Attachment: Results from a Longitudinal Study. Journal of Health Economics, 24, Zhang X, Zhao X, Harris A Chronic Diseases and Labour Force Participation in Australia. Journal of Health Economics, 28, Daysal M, Orsini C The Miracle Drugs: Hormone Replacement Therapy and Labor Market Behavior of Middle Aged Women. Tilburg University Working Paper. Garthwaite C. Forthcoming. The Economic Benefits of Pharmaceutical Innovations: The Case of Cox-2 Inhibitors. American Economic Journal: Applied Economics. 7
8 Development David NW Accounting for The Effect of Health on Economic Growth. Quarterly Journal of Economics, 122(3), Hookworm Miguel E, Kremer M Worms: Identifying Impacts on Education and Health in the Presence of Treatment Externalities. Econometrica, 72(1), Bleakley H Disease and Development: Evidence from Hookworm Eradication in the American South. Quarterly Journal of Economics, 122(1), Malaria Bleakley H Malaria Eradication in the Americas: A Retrospective Analysis of Childhood Exposure. American Economic Journal: Applied Economics, 2(2), Cutler DM, Fung W, Kremer M, Singhal M, Vogl T Early-life Malaria Exposure and Adult Outcomes: Evidence from Malaria Eradication in India, American Economic Journal: Applied Economics, 2(2), 72-94, Lucas A Malaria Eradication and Educational Attainment: Evidence from Paraguay and Sri Lanka. American Economic Journal: Applied Economics, 2(2), Malnutrition Field E, Robles O, Torero M Iodine deficiency and schooling attainment in Tanzania. American Economic Journal: Applied Economics, 1(4), Clean Water Kremer M, Leino J, Miguel E, Zwane AP Spring Cleaning: A Randomized Evaluation of Source Water Improvement. Quarterly Journal of Economics, 126(1),
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