Health Economics

The focus of this unit is on the application of economic analysis to study the consumption and production of health. The main objectives of this subject are to develop an understanding of: (1) the underlying economic frameworks appropriate to study health and health care, and (2) the impact of market failures in the provision of health care and the role for government policy. Topics covered may include production of health, demand for health (including the demand for health “bads”), moral hazard and adverse selection in health insurance markets, health labour markets, including physician-patient interactions, the institutions of the Australian system of health care, health policy and evaluation techniques.

• 1Demonstrate an understanding of the basic economic concepts used in the study of health economics
• 2Apply appropriate economic tools to analyse the behaviour of the various agents in the provision and consumption of health care.
• 3Describe the major government programs and institutional features in the provision of health care in Australia and the debates currently surrounding these programs.
• 4Demonstrate knowledge of the main empirical tools used in the analysis of issues in health economics.