ME416 Applied Health Econometrics

The 2016 Methods Summer Programme is now closed. Details for the 2017 Programme will be available soon.

This course provides a practical overview of the most common econometric techniques used in health economics and health policy.  We begin by providing a foundation of basic statistics which allows us to highlight the ‘evaluation problem’. The remainder of the course focuses on the main approaches available to solve this problem and allow for causal inference: lab experiments, field experiments, natural experiments, linear regression techniques, instrumental variables, regression discontinuity design, propensity score matching, difference-in-differences design and panel data approaches. For each approach, we will discuss the basic intuition, underlying assumptions and relative advantages and disadvantages. We will critically discuss literature that uses each method. The course is ‘hands on’ so participants can expect to get practical experience with Stata using real world data and carefully interpret statistical output.

Course benefits
After successful completion of this course participants will:

• Acquire a competency in econometrics as it is applied to health economics.
• Have a working knowledge of Stata.
• Be able to interpret statistical output and critically assess research design.
• Be able to clearly distinguish between association and causality in an econometric framework and see the value of both.
• Have the tools to distinguish between high quality and low quality research that use the introduced techniques

Pre-requisites
Participants should have some professional experience working in careers that involve health economics, health policy or management. Alternatively this course is also suitable for high level students who are studying in one of the above areas.

A growth in evidence based medicine has meant that an ability to understand statistical modelling is more important than ever. Research varies in quality and it is essential that individuals who make decisions based on statistical models understand how to question and comment on their output. Equally, there is an increase in demand for individuals who can create models that quantify the impact of an intervention on health. Therefore, this course aims to teach participants econometric techniques that are commonly used in health research. 

Overall this course will be delivered using a ‘hands-on’ approach, with both lectures and seminars conducted in a lab environment.  Participants will begin by fully appreciating the ‘evaluation problem’ and learn techniques that can help them achieve causal inference. The value of research that focuses on conditional estimates will also be discussed. The course will consider the advantages and disadvantages of lab and field experiments. Additionally, the following empirical methods will be covered: linear regression techniques, instrumental variables, regression discontinuity design, propensity score matching, difference and difference design and panel data approaches. For each method participants will gain an insight into the underlying assumptions as well as their relative strength and weaknesses. Participants will also be introduced to Stata, the dominant software used in empirical analysis, and estimate models using real world data.  The seminars will focus on the interpretation of the results.

Main text
Angrist, Joshua David, and Jörn-Steffen Pischke. (2015) Mastering 'metrics: The Path From Cause to Effect.

Software used
Stata version 14

Assessment
A two-hour open book exam on the final day that will assess both Stata competency and the curriculum covered in this course.

Dr Grace Lordan is a health economist at the LSE. She has published widely in the top journals of health economics, and is particularly interested in the careful interpretation of empirical results. Her research is mainly in empirical health economics. She has over ten years experience teaching econometrics to postgraduate students. Dr Grace Lordan is also the director of the Health Economics, Policy and Management (HEPM) executive masters at the LSE. This is a masters offered to individuals with more than five years professional work experience and from this she has become particularly skilful at teaching executive students. To learn more about Dr Grace Lordan’s teaching or research please visit gracelordan.co.uk 

Please note: A full timetable will be provided at registration on Monday 22 August. The below timetable contains approximate hours only.