Economics 122: Introduction to Health Economics

							Economics 122: Health Economics                                                                             Fall 2010

                                  GROUP RESEARCH PROJECT
Objectives
       The purpose of the group research project is to allow you to apply economic tools to an analysis of a real world
       issue in the health care sector and enhance your presentation skills. Your presentations are a fun way to end the
       semester!

       You will work in groups of 2 or 3 students.

       (1) Identify your research question(s) in a popular press article (e.g. in The New York Times, The Wall Street
           Journal, The Washington Post, The Charlotte Observer). Find specific health economic concept(s) in the
           article that can be analyzed using Eco122 analytical tools. State your research question(s).

                  Alternatively, you can also start with an economic question that interests you and find a related
                   popular press article.

                  However, you cannot start with an article written by an economist (and end up reporting an economic
                   analysis done by someone else).

       (2) Conduct a brief literature background. You must find and describe one to two economics journal articles
           written on the subject. In order to better understand the context of your question, you will also have to read
           additional articles in popular press, health care or medical journals.

       (3) Analyze your health economics question(s) using basic economic tools taught in Eco122. As part of your
           research project, you must address how your studied problem relates to health care costs, access and/or
           quality and the health care reform. Then imagine that you are a health care policy advisor and take a position
           as a critic or an advocate: discuss equity considerations, offer options and/or recommend policies (normative
           analysis).

       (4) Prepare a presentation with PowerPoint slides for your classmates.
       (5) Submit the transcript of speaker notes accompanying your presentation (instead of a paper).


Grading
       Your grade will be based on
           the overall quality of the group's analysis and presentation (judged both by me and your classmates)
                  o quality and depth of the economic analysis
                  o use of appropriate literature background
                  o clarity and organization of the presentation
           quality of the transcript of your group’s speaker notes
           your own participation in the presentation



       Proposal:                                         30% of the research project grade

       Rough draft + presentation of theoretical part:   40% of the research project grade

       Presentation in class + class handout:            30% of the research project grade



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Tips:
Topic Search
        You should start by looking at recent health care articles published in the popular press (e.g.., search for your
        topic of interest in The New York Times). Once you find an article with a topic you like make sure that there is a
        problem of an economic character in it. Can you poise the problem as a question for an Eco122 exam? Can you
        analyze the problem using economic concepts/models from Eco122 class (consider also material not yet covered
        in class from S&N chapters 7, 8, 10, 12, 13)? Please feel free to meet with me to discuss the questions before the
        proposal deadline!

               Supply and demand analysis
               Consumers: Demand for health / Production of health; Demand for medical care; Other inputs in health
                production; Price elasticity of demand, Income elasticity of demand, Cross-price elasticity of demand
               Firm: production decisions, costs changes
               Market structure (pricing behavior and strategies; innovations): Perfect competition, Monopoly,
                Monopsony, Oligopoly, Monopolistic Competition.
               Externalities
               Government Interventions (price controls, taxes)
               Insurance market: demand and supply, risk aversion, moral hazard, adverse selection issues, market
                structure
               Physician and hospital market models
               Cost Effectiveness and Cost benefit analysis


        Here are examples topics students chose last years (feel free to choose the same topic):

               HPV vaccination subsidies
               Regulating markets for kidney transplantations
               Health insurance costs and obesity
               Soft drink policies in public schools
               Smoking and health care costs (one project in US and one in India)
               Cost efficiency of gastric surgeries in treatment of Type-II diabetes
               Coverage of autism treatment and insurance market
               DNA testing and insurance market
               Health savings accounts
               Medical malpractice tort reform
               Income gap between primary physicians and specialists
               Shift of physicians from traditional medical care to cosmetic care
               Counterfeit prescription drugs: effect on cost of prescription drugs
               Change in recommended dosage: effect on price and future R&D efforts
               Hospice Care and health care expenditures




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Health Economics Literature Background:

      Articles in any Economics journal (see www.jstor.org) or Economics articles in health care journals, such as
      Journal of Health Economics, Health Affairs, Health Services Research, New England Journal of Medicine,
      Journal of Health Politics, Journal of the American Medical Association, Health Policy and Planning

      Reports and papers on web sites listed on the class Blackboard under “Health Economics Research”


Presentation Format
      Paper is not required in this class, although your presentation slides and the detailed speaker notes include parts
      you would expect to see in a paper. The exact format of each presentation will depend on the topic, but here are
      general guidelines that follow an organization of a typical economics research paper (not all steps may apply to
      your topic):

      1. Introduction
             a. State your economic questions (clear and concise hypotheses)
             b. Why is your question important? (Motivation: describe the popular press article where you found the
                 question, perhaps cite some telling statistics)
      2. Background (literature review):
             a. Provide any institutional and medical facts your audience needs to understand in order to follow your
                 analysis.
             b. Describe one or two examples of economic research done in this area, empirical results and
                 limitations (articles of your choice, plus references in S&N and assigned readings)
      3. Analyze your economic question
             a. Use theoretical models/graphs taught in this class
             b. Discuss the effect on medical care spending/access/quality
      4. Conclusion
             a. Discuss and/or recommend possible government policies or adjustments in people’s behavior or by
                 private industries. Is your research question addressed by the health care reform?


Class Presentations
      At the time of your presentation each group will hand in PowerPoint slides and speaker notes to me. Presentations
      will be 15-20 minutes in length followed by questions and answers from your classmates (about 5 minutes).




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