HEALTH ECONOMICS B

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Subtitle	Supply, Incentives, and Market Behavior
Lecturer(s)	YAO, YING
Credit(s)	2
Academic Year/Semester	2026 Spring
Day/Period	Wed.2
Campus	Mita
Class Format	Face-to-face classes (conducted mainly in-person)
Registration Number	29235
Faculty/Graduate School	ECONOMICS
Department/Major	ECONOMICS Type A, B
Year Level	3, 4
Field	MAJOR SUBJECTS
Grade Type	This item will appear when you log in (Keio ID required).
Course Description	This course is a core subject within the specialized areas of economics. Building on the Basic Education Courses and Basic Courses for Specialized Education in the first and second years, students cultivate a deep analytical ability in a specific area of economics.
K-Number	FEC-EC-34142-212-07

Course Administrator	Faculty/Graduate School	FEC	ECONOMICS
Course Administrator	Department/Major	EC	ECONOMICS
Main Course Number	Level	3	Third-year level coursework
	Major Classification	4	Major Subjects Course- Core Course
	Minor Classification	14	Lecture - Industry and Labor
	Subject Type	2	Elective required subject
Supplemental Course Information	Class Classification	2	Lecture
	Class Format	1	Face-to-face classes (conducted mainly in-person)
	Language of Instruction	2	English
Academic Discipline		07	Economics, business administration, and related fields

Course Contents/Objectives/Teaching Method/Intended Learning Outcome

This course introduces health economics as an applied field that uses microeconomic theory and empirical methods to study health, healthcare markets, and policy. The course is organized across the academic year: The fall semester examines demand-side behavior through formal economic models of individual decision-making; the spring semester analyzes supply-side behavior, studying how healthcare providers, insurers, and firms operate under production constraints, strategic incentives, and regulatory frameworks.

The spring semester progresses through four modules: (1) Foundations of Healthcare Production, (2) Incentives and Provider Behavior, (3) The Pharmaceutical Industry, and (4) Health Policy and Resource Allocation. Each module integrates theoretical models with empirical evidence to analyze healthcare markets and inform policy evaluation.

By the end of the semester, students will be able to analyze healthcare production, provider behavior, and market structure using microeconomic models; critically interpret empirical evidence on incentives and behavior in healthcare and pharmaceutical markets; and evaluate the policy trade-offs and welfare implications of supply-side health policies affecting efficiency, equity, and resource allocation.

Course Taught by Faculty Member with Professional Experience

Not applicable

Active Learning MethodsDescription

Discussions, Debates

Preparatory Study

Students are expected to allocate 2–3 hours per lecture for preparation and review.

Course Plan

Lesson 1

Course Overview

Lesson 2

Production and Costs in Health Care

Lesson 3

The Supply of Health Care

Lesson 4

Provider Labor Markets

Lesson 5

Physician Agency and Demand Inducement

Lesson 6

Payment Systems and Provider Incentives

Lesson 7

Midterm Exam

Lesson 8

Pharmaceutical Innovation and Market Structure

Lesson 9

Pharmaceutical Pricing and Reimbursement

Lesson 10

Regulation, Access, and Cost Control

Lesson 11

Social Health Insurance Systems

Lesson 12

Introduction to Health Technology Assessment

Lesson 13

Benefit Package Design and Resource Allocation

Lesson 14

Course Wrap-up

Other

Supplementary lecture

Method of Evaluation

Evaluation is based on assignments, a midterm exam, and a final exam. Specific grading weights will be announced during the first class session.

Generative AI Policy for Classes

Generative AI tools (e.g., ChatGPT, Gemini, etc.) and any unauthorized assistance are strictly prohibited during exams.

Textbooks

No specific textbooks are required for this course.

Reference Books

Bhattacharya, J., Hyde, T., & Tu, P. (2014). Health Economics. Bloomsbury Publishing. ISBN: 978-1137029966
Folland, S., Goodman, A. C., Stano, M., & Danagoulian, S. (2023). The Economics of Health and Health Care (9th Edition). Taylor & Francis Group. ISBN: 978-1032311654
Rice, T.H., Barnes, A.J. and Unruh, L. (2023) The Economics of Health Reconsidered (5th Edition). Health Administration Press. ISBN: 978-1640553477

Lecturer's Comments to Students

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Question/Comments

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Lab / Skill-development / On-site training	An educational approach in which students deepen their understanding of educational content through first-hand experience and trial-and-error by initiating their own activities at facilities and accommodations both on and off campus.
Fieldwork	An educational approach in which students conduct surveys and observations on their own to collect information both on and off campus.
Presentations	An educational approach in which students deepen their understanding of educational content by preparing materials and delivering presentations in class.
Discussions, Debates	An educational approach in which students deepen their understanding of educational content through sharing and discussing their opinions on designated topics.
Group work	An educational approach in which students are divided into small groups and assigned tasks on issues related to educational content.
Role-playing	An educational approach in which students deepen their understanding of educational content by being assigned specific roles to play, thus allowing them to experience different viewpoints.
Flipped classroom	An educational approach in which students study the course lecture in advance, and questions and discussions relating to that content are then held in class.
Problem-based learning	An educational approach in which students acquire knowledge and skills related to educational content by attempting to tackle specific projects or problems posed to them.