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Evaluation of Health Policy - ECO00086M

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  • Department: Economics and Related Studies
  • Module co-ordinator: Prof. Andrew Jones
  • Credit value: 20 credits
  • Credit level: M
  • Academic year of delivery: 2024-25
    • See module specification for other years: 2023-24

Module summary

The module shows how to use econometric methods to design, conduct and critically appraise evaluations of health policies with non-experimental data.

Module will run

Occurrence Teaching period
A Semester 2 2024-25

Module aims

The narrow goal of evaluative research is to identify the causal impact of an intervention on outcomes of interest. The broader goal is to understand the mechanisms underlying this impact. In evaluating the cost-effectiveness of medical technologies, randomized controlled trials (RCTs) are often regarded to be the gold standard in identifying internally valid estimates of causal effects. In health policy research, randomized experiments are less prevalent and researchers are more often faced with identifying causal relationships from observational, or non-experimental, sources of data where the assignment of individuals to treatment or control group is beyond the control of the researcher. In such circumstances, the identification of causal effects is difficult and econometric tools are often called into play.

The module is motivated by the use of non-experimental data to evaluate health policies. The emphasis of the module is on the issues that arise in health economics in finding appropriate data and reliable identification strategies, rather than on the underlying economic and econometric theory. The module aims are to provide:

- knowledge of the range of quantitative methods that are available for policy evaluation;

- an understanding of their underlying assumptions, strengths and weaknesses;

- an ability to apply the methods in practice.

Throughout the module computer-based practical examples will be used to give experience of how these evaluation methods can be applied using the statistical software Stata.

Module learning outcomes

The module is motivated by the use of non-experimental data to evaluate health policies. The emphasis of the module is on the issues that arise in health economics in finding appropriate data and reliable identification strategies, rather than on the underlying economic and econometric theory. The aim is to provide knowledge of the range of quantitative methods that are available for policy evaluation; an understanding of their underlying assumptions, strengths and weaknesses; an ability to apply the methods in practice. Throughout the module computer-based practical examples will be used to give experience of how these evaluation methods can be applied using the statistical software Stata.

The module will provide you with the skills to:

- design (understanding when and why to use different study designs)

- conduct (be able to implement all of the methods in Stata)

- critically appraise (be able to evaluate the merits of a study against a general checklist)

quantitative approaches to policy evaluation in the context of empirical studies from health economics. You will be able to summarise, replicate and critique empirical policy evaluation studies.

Module content

The module will present quantitative approaches to policy evaluation in the context of empirical studies from health economics. The specific methodological topics that will be covered include:

The evaluation problem (Topic 1)

1.1 Counterfactuals and the Potential Outcomes Model

1.2 Treatment effects

1.3 Selection bias

Selection on observables (Topics 2 & 3)

2.1 Regression analysis (RA) and fixed effects (FE) model

3.1 Matching

3.2 Reweighting (IPW and IPWRA Doubly robust estimation)

Selection on unobservables (Topics 4, 5 & 6)

4.1 Instrumental variables (IV)

4.2 Structural models and control functions

5.1 Regression discontinuity designs (RDD)

6.1 Difference-in-differences (DiD)

6.2 Event study analysis

6.3 Synthetic control method (SCM)

Health equity and distributional impact (Topic 7)

7.1 Inequality indices

7.2 Distributional impact and decomposition analysis

Assessment

Task Length % of module mark
Essay/coursework
Evaluation of Health Policy		 N/A 100

Special assessment rules

None

Reassessment

Task Length % of module mark
Essay/coursework
Evaluation of Health Policy		 N/A 100

Module feedback

Following departmental policy, written cohort feedback will be provided online.

Indicative reading

An introductory overview of all of the material can be found in:

Jones, A.M. and Rice, N. (2011) Econometric evaluation of health policies, in Oxford Handbook of Health Economics, Glied, S. and Smith, P.C. (eds.), Oxford, Oxford University Press.


The information on this page is indicative of the module that is currently on offer. The University is constantly exploring ways to enhance and improve its degree programmes and therefore reserves the right to make variations to the content and method of delivery of modules, and to discontinue modules, if such action is reasonably considered to be necessary by the University. Where appropriate, the University will notify and consult with affected students in advance about any changes that are required in line with the University's policy on the Approval of Modifications to Existing Taught Programmes of Study.