Applied Health Economics

Applied Health Economics
20 hours
S. Robone


The course provides students with an understanding of the most relevant micro-econometric techniques available to applied researchers, with a particular focus on the use of individual level data in health economics. The purpose of the course is to help students in selecting techniques suited both to their data and to their economic model and illustrate the skills required to put these techniques into practice.

The emphasis of the course is on applied work and on the illustration of the use of relevant computer software (STATA) applied to large-scale survey datasets. The course is computer based and is built around empirical case studies rather than general theory and the emphasis is on learning by example. Relevant methods are presented alongside the Stata code and empirical results are discusses in class. Practical applications of the methods are illustrated using data on health from, among others, the British Household Panel Survey (BHPS) and the WHO World Health Survey (WHS).

By the end of the course, participants should be able to:

  • formulate empirical problems involving micro-data
  • select appropriate econometric methods
  • understand methods of estimation and be able to implement them, using appropriate software
  • construct usable datasets and know the limitations of the data
  • interpret the results of the analysis

Course content

The course will cover the following topics:

  • survey design;
  • binary choice models;
  • multiple choice models;
  • count data regression;
  • hierarchical models;
  • models and methods for panel data;

Examples of the application of the previous techniques to develop research project in Health Economics will be made by making reference to issues related to self-reported health, self-reported satisfaction with health services, and decisions about lifestyle (such as smoking) and utilization of health services (such as number of visits to the doctor).


The software package used for the practical examples is STATA


Andrew M. Jones, Nigel Rice, Teresa Bago d’Uva, Silvia Balia; Applied Health Economics (2nd Edition); Taylor & Francis Ltd, 2012.