SA4E2      Half Unit
Resource Allocation and Cost-effectiveness Analysis

This information is for the 2015/16 session.

Teacher responsible

Dr Matteo Galizzi COW.G.05

In addition, Professor M Drummond (Professor of Health Economics, University of York) will be teaching on the course.


This course is compulsory on the Executive MSc in Health Economics, Policy and Management. This course is not available as an outside option.

Course content

The aim is to give an overview of the theory underlying economic evaluation as applied to the health care sector; to consider the different forms of economic evaluation; to give an understanding of the techniques associated with economic evaluation as applied to health care; to give an understanding of the interpretation of the results gained from economic evaluation; to provide the main practical tools necessary to undertake economic evaluation using computer-based programs. The course will cover the following topics: Conceptual rationales for economic evaluation in the health care sector (Pareto efficiency, Social Welfare, extra-welfarism and decision-making); Introduction to the methods of economic evaluation: cost-effectiveness analysis, cost-utility analysis, and Cost-benefit analysis; Cost data; Incremental cost-effectiveness analysis; Quality Adjusted Life Years gained and other outcome measures; Discounting; Uncertainty and sensitivity analysis; Economic evaluation and clinical trials; Policy decision-making using economic evaluation. 


10 hours of lectures and 10 hours of seminars, including computer-based practical workshops.

Formative coursework

Mock exam given after teaching session with feedback from course organiser.

Indicative reading

M Drummond et al, Methods for the Economic Evaluation of Health Care Programmes, Oxford, OUP, 2005.

M Drummond & A McGuire (Eds), Economic Evaluation in Health Care: Merging Theory with Practice, Oxford, OUP, 2002.

Gray, A. Clarke, P.M, Wolstenholme, P., Wordsworth, S. Applied Methods of Cost-effectiveness Analysis in Healthcare (Handbooks in Health Economic Evaluation), Oxford, OUP, 2011.

Students will be given access to essential readings before the course begins through the pre-sessional reading programme on Moodle, which they will be expected to read prior to the first day of class.


Take home exam (100%).

The take-home exam will consist of a critical appraisal of a cost-effectiveness study through 4 specific questions. At the end of June 2015, a cost-effectiveness study will be made available on Moodle. In September 2015, on a date provided in advance, students will be able to log on in the system for 24 hours, and will be given 2 hours from when they log on to answer the 4 questions.

Student performance results

(2011/12 - 2013/14 combined)

Classification % of students
Distinction 15.1
Merit 65.5
Pass 19.4
Fail 0

Key facts

Department: Social Policy

Total students 2014/15: Unavailable

Average class size 2014/15: Unavailable

Controlled access 2014/15: No

Value: Half Unit

Guidelines for interpreting course guide information