Wirtschaftswissenschaftliche Fakultät


Course Details

Prof. Nuscheler

Health Economics

Lecturer: Prof. Dr. Robert Nuscheler
Type: Vorlesung und Übung
Exam: written examination
Term: summer
Level: Master
Limitation: An application to attend is necessary.

Professional competences: Students are able to analyze insurance markets and to determine the equilibrium of the insurance market under alternate information constraints and equilibrium concepts. They will be able to distinguish between important market failures in health insurance markets, namely, the free-riding problem, adverse selection, ex ante moral hazard, and ex post moral hazard. Students will be able to pin down the respective market failures and to develop public policy responses that are suited to mitigate the associated welfare losses. Moreover, students need to understand the problem of risk selection in regulated competitive health insurance markets and be aware of the prime policy responses that aim at reducing the health insurers? incentives to engage in risk selection, that is, risk adjustment and risk sharing. Students will be able to explain that imperfect risk adjustment requires a tradeoff between the inefficiencies arising from direct and indirect risk selection. Finally, students are able to derive the incentives for health care providers originating in reimbursement systems. These incentives are related to the volume of care, the quality of care, and the case-mix at a private practice or hospital. Methodological competences: After completing this course, students will be able to apply the concepts of welfare economics and information economics to health insurance and health care markets. This includes the identification of market failures and the development of suited public policy responses. Interdisciplinary skills: A solid understanding of welfare economics and information economics is crucial for understanding the pitfalls and challenges in the field of health economics and beyond. After all, many markets of public concern are plagued by information constraints, e.g., the labor market and, rather generally, markets for goods with imperfect competition. The methods acquired in this course can easily be applied to these markets. Key competences: Students are able to analyze relevant markets, assess their efficiency properties, and suggest - if necessary - optimal regulations. As part of this, students are able to reduce research questions to their core, analyze them using modern microeconomic theory, and competently present and defend their results.

For further information or application procedure please check the module manual and the website of the chair.