This course aims to introduce economic tools for understanding and analysing the health care sector. We will use economic tools to analyse the major participants in the healthcare sector—hospitals, physicians, health insurers, and pharmaceutical firms. We will also investigate how government policies shape healthcare markets and develop skills to assess the effects of these policies using economic approaches.
Topics that we will investigate in depth include:
1. Distinctive economic characteristics of ' healthcare' as a commodity;
2. Fundamental demand for health: the Grossman's model;
3. Quality and financial incentive of healthcare providers: the Industrial Organisation perspective;
4. Private and public health insurance I: Adverse Selection and the Rothschild-Stiglitz model;
5. Private and public health insurance II: Ex-ante and ex-post Moral Hazard;
6. Health Technology Assessment: Cost-effectiveness analysis and Cost-benefit analysis
7. Healthcare systems around the world and healthcare reforms: Past, present and future
Learning Outcomes
Upon successful completion, students will have the knowledge and skills to:
- Analyse the economic characteristics of healthcare markets within their historical, political, and cultural contexts, and evaluate how these factors influence health policy and system design.
- Apply microeconomic models (e.g. Grossman model, Rothschild–Stiglitz model) to real-world healthcare scenarios, collaboratively exploring diverse stakeholder perspectives and policy implications.
- Evaluate the roles, incentives, and interactions of hospitals, physicians, insurers, and pharmaceutical companies using economic tools, and propose strategies to address inefficiencies and inequities in the system.
- Conduct cost-effectiveness and cost-benefit analyses using digital tools and data, and communicate results effectively to both specialist and non-specialist audiences.
- Critically reflect on the ethical, social, and distributive dimensions of health economic decisions, considering pluralistic viewpoints and the broader societal impacts of policy choices.
Indicative Assessment
- Final Exam, mid-semester exam(s), quizzes, assignments or some combination thereof. See the Class Summary for details. (100) [LO 1,2,3,4,5]
- Group work and team-based activities: Discussion and debate over specific issues in healthcare reforms and policies, to be assigned and conducted in tutorial. Groupwork assessment will be compulsory. The weighting percentage will be published in the class summary. (0) [LO 2,3,5]
The ANU uses Turnitin to enhance student citation and referencing techniques, and to assess assignment submissions as a component of the University's approach to managing Academic Integrity. While the use of Turnitin is not mandatory, the ANU highly recommends Turnitin is used by both teaching staff and students. For additional information regarding Turnitin please visit the ANU Online website.
Workload
130 hours in total over the semester consisting of lectures, tutorials and private study time.
Inherent Requirements
This course requires active participation in group work. Teamwork is an essential component that develops collaboration, communication, and problem-solving skills vital to your studies and future practice as an economist. However, individual assessments such as quizzes and the final exam must be completed independently.
Requisite and Incompatibility
Prescribed Texts
See Class Summary
Assumed Knowledge
Basic statistics, probability, and multi-variate calculus such as partial derivatives and constrained optimization.
Fees
Tuition fees are for the academic year indicated at the top of the page.
Commonwealth Support (CSP) Students
If you have been offered a Commonwealth supported place, your fees are set by the Australian Government for each course. At ANU 1 EFTSL is 48 units (normally 8 x 6-unit courses). More information about your student contribution amount for each course at Fees.
- Student Contribution Band:
- 34
- Unit value:
- 6 units
If you are a domestic graduate coursework student with a Domestic Tuition Fee (DTF) place or international student you will be required to pay course tuition fees (see below). Course tuition fees are indexed annually. Further information for domestic and international students about tuition and other fees can be found at Fees.
Where there is a unit range displayed for this course, not all unit options below may be available.
| Units | EFTSL |
|---|---|
| 6.00 | 0.12500 |
Course fees
- Domestic fee paying students
| Year | Fee |
|---|---|
| 2026 | $5520 |
- International fee paying students
| Year | Fee |
|---|---|
| 2026 | $7020 |
Offerings, Dates and Class Summary Links
ANU utilises MyTimetable to enable students to view the timetable for their enrolled courses, browse, then self-allocate to small teaching activities / tutorials so they can better plan their time. Find out more on the Timetable webpage.
Class summaries, if available, can be accessed by clicking on the View link for the relevant class number.
Second Semester
| Class number | Class start date | Last day to enrol | Census date | Class end date | Mode Of Delivery | Class Summary |
|---|---|---|---|---|---|---|
| 9062 | 27 Jul 2026 | 03 Aug 2026 | 31 Aug 2026 | 30 Oct 2026 | In Person | N/A |