Economics 132 - Health Economics
Health Economics 132 presents a detailed description of the institutional features of the U.S. health care market and current trends, as well as some international comparisons. These features and their consequences are studied using microeconomics tools and some statistical/mathematical analysis (especially applied to insurance). Compared to other areas of economics, the economics of health care is complicated by a lack of information (about what health services the consumer needs), great uncertainty (hence the need for insurance), payment through third-parties (insurance companies) rather than direct payment by the consumer, monopoly (due to patents), externalities (infectious diseases) and public goods provision (such as government-funded research). A considerable part of the course considers these complications.