COURSE CODE : SGXAPPECO

COURSE TITLE : Applied Economics in the Public Sector

SCHOOL YR & TERM : SY 2023-24 Term 3
NUMBER OF UNITS : 3
FACULTY : Enrico C. Mina, DBA
TEACHING ASSOCIATE : Meljun R. Banogon, MPA
16 — 19 January 2024 (synchronous, onsite)
SCHEDULE :
12 February 2024 (integration, onsite/online)

Course Description

Health care is an essential human need. At the same time, like all human material
needs and wants, it requires the allocation of scarce material resources, all of which have both
explicit and opportunity costs. The challenge facing health care professionals is: “How can our
country equitably and sustainably respond to the health care needs of a growing population
when resources are very scarce (and costly in some cases)?”

Economics is the social science that deals with the maximum possible satisfaction of
human material needs and wants in the face of the scarcity of the resources needed to provide
the goods and services that will meet those needs and wants. This course is an introduction
to the application of economic principles to the public sector, particularly on public health.

There are two major branches of economics: microeconomics and macroeconomics.

The former focuses on the economic behavior of individuals and firms while the latter focuses
on system structure and the complex interactions between the structural components that
affect national health system outcomes. Both branches are important in understanding health
care policies and management decisions, and the course will cover both.

Economic theory and analysis influence health decision-making and the course will
provide the students with an economic framework to understand how the Philippine health
system is structured. The course will also deal with the issue of the allocation of limited health
care resources. Further, the conduct of the economic evaluation of health care interventions
will be discussed in class.

Learning Objectives

At the end of this course, the learners would have been able to:

1. Understand and explain how economic theories and principles apply to the efficient
provision of health care services and the optimal achievement of health outcomes
despite the limitations of resources available.
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2. Explain the systemic interaction and interrelationships among the various actors in
the health care sector: patients, physicians, other health care personnel, various
health care-providing institutions, health insurance companies, and the government.

3. Examine how various countries have tried to design and operate systems that seek
to deliver health care services, particularly public health, to all citizens despite
growing population and demand and limited resources.

4. Explore and analyze various special topics relevant to the provision of Universal
Health Care in the Philippines.

5.
Course Outline and Group Assignments

N.B.: All assignments are found in The Economics of Health and Health Care 8th edition by
Folland, Goodman, and Stano. Pearson (2017)

DQ = Discussion Question Ex = Exercise

Session Chapter Group Assignment

1A 1: Introduction 1 DQ #2, p. 49
8:30 – 9:50 AM 2 DQ #4, p. 50
3 Ex #1, p. 50
4 Ex # 5, p. 50
1B 2: Microeconomic Tools for 2 DQ #3, p. 86
10:00 – 11:20 AM Health Economics 3 DQ #8, p. 86
(Break 9:50 – 10:00 AM) 4 Ex #1, p. 86
1 Ex #3, p. 87
1C 3: Statistical Tools for Health 3 DQ #4, p. 105
10:50 AM– 12:10 PM Economics 4 DQ #8, p. 105
(Lunch 12:40 – 2:00 PM) 1 Ex #6, p. 106
2 Ex #8, p. 106
1D 4: Economic Efficiency and Cost- 4 DQ #3, p. 131
2:00 PM – Benefit Analysis 1 DQ # 12, p. 132
3:20 PM 2 Ex #3, p. 132
(Break 3:20 – 3:30 PM) 3 Ex #5, p. 132
1E 5: Production of Health 1 DQ #5, p. 159
3:30 PM – 4:50 PM 2 DQ #9, p. 159
3 Ex #3, p. 159
4 Ex #5, p. 160
2A 6: The Production, Cost, and 2 DQ #5, p. 186
8:30 – 9:50 AM Technology of Health Care 3 DQ #9, p. 186
4 Ex #4, p. 187
1 Ex #8, p. 187
2B 7: Demand for Health Capital 3 DQ #5, p. 211
10:00 – 11:20 AM 4 DQ #6, p. 211
(Break 9:50 – 10:00 AM) 1 Ex #1, p. 211
2 Ex #8, p. 211
2C 8: Demand and Supply of Health 4 DQ #3, p. 240
10:50 AM– 12:10 PM Insurance 1 DQ #9, p. 240
(Lunch 12:40 – 2:00 PM) 2 Ex #7, p. 241
3 Ex #9, p. 241
2D 1 DQ #3, p. 268
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2:00 PM – 9: Consumer Choice and 2 DQ #12, p. 268

3:20 PM Demand 3 Ex #3, p. 268
(Break 3:20 – 3:30 PM) 4 Ex #6, p. 269
2E 10: Asymmetric Information and 2 DQ #5, p. 289
3:30 PM – 4:50 PM Agency 3 DQ #8, p. 289
4 Ex #3, p. 289
1 Ex #4, p. 289
3A 11: The Organization of Health 3 DQ #1, p. 317
8:30 – 9:50 AM Insurance Markets 4 DQ #8, p. 318
1 Ex #2, p. 318
2 Ex #7, p. 319
3B 12: Managed Care 4 DQ #1, p. 353
10:00 – 11:20 AM 1 DQ #5, p. 353
(Break 9:50 – 10:00 AM) 2 Ex #3, p. 354
3 Ex #6, p. 354
3C 13: Non-profit firms 1 DQ #1, p. 375
10:50 AM– 12:10 PM 2 DQ #4, p. 375
(Lunch 12:40 – 2:00 PM) 3 Ex #3, p. 376
4 Ex #4, p. 376
3D 14: Hospitals and Long-term Care 2 DQ #3, p. 398
2:00 PM – 3 DQ #7, p. 398
3:20 PM 4 Ex #1, p. 398
(Break 3:20 – 3:30 PM) 1 Ex #2, p. 398
3E 15: The Physician’s Practice 3 DQ #4, p. 418
3:30 PM – 4:50 PM 4 DQ #7, p. 418
1 Ex #2, p. 418
2 Ex #3, p. 418
4A 16: Health-Care Labor Markets 4 DQ #3, p. 446
8:30 – 9:50 AM and Professional Training 1 DQ #6, p. 446
2 Ex #3, p. 447
3 Ex #6, p. 447
4B 17: The Pharmaceutical Industry 1 DQ #5, p. 475
10:00 – 11:20 AM 2 DQ #9, p. 475
(Break 9:50 – 10:00 AM) 3 Ex #2, p. 476
4 Ex #3, p. 476
4C 18: Equity, Efficiency, and Need 2 DQ #5, p. 506
10:50 AM– 12:10 PM 3 DQ #7, p. 506
(Lunch 12:40 – 2:00 PM) 4 Ex #4, p. 506
1 Ex #7, p. 506
4D 19: Government Intervention in 3 DQ #10, p. 533
2:00 PM – Health-Care Markets 4 DQ #11, p. 533
3:20 PM 1 Ex #7, p. 534
(Break 3:20 – 3:30 PM) 2 Ex #8, p. 534
4E 21: Comparative Health Care 1 DQ #3, p. 597
3:30 PM – 4:50 PM Systems 2 DQ #11, p. 598
3 Ex #2, p. 598
4 Ex #3, p. 598
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Course Methodology
The course will be run like a seminar, and the primary methodology will not be lecturing by the
faculty but extensive research and reporting by all members of the class. For those wanting
more explanations of economic theories and concepts, the professor has included in the
Canvas Files section a set of YouTube instructional videos on both Microeconomics and
Macroeconomics, which everyone is invited to view outside of class. Two pdf textbooks in
basic Economics are also provided in the Files so that everyone can read more deeply on
these topics.
Class Presentations (Group, 35%)
The class will be divided into four small groups. In every class session during the first four
days, five chapters in the textbook will be discussed. Each group will have an assigned
question to research on, analyze, and present in class for each chapter. That means that in
every class session, each group will be presenting five times (on five different discussion or
exercise questions), with each presentation not longer than 20 minutes using PowerPoint.
Each group will also submit by uploading to a designated site a Word or pdf file (not the
PowerPoint presentation file) for each of the questions assigned. The filenames for these
reports should follow the format:
Grp#_Chap#_DQ# or Ex#.docx (or.pdf)
These reports should be uploaded before the start of the morning and afternoon sessions in
which they will be discussed; late submissions will be penalized with a lower grade. Each
group is free to determine how its presentation will be made and who will specifically present;
the use of videos, animation, and other aids is allowed and encouraged.
Term Paper (Individual, 40%)
Instead of a final exam, each student will work on an individual term paper to be submitted by
file uploading one month after the end of the online classes (just before the integration
session). A list of pre-approved topics is included at the end of this syllabus. Each student
should choose a topic (no duplications, on a first-come-first-served basis) to work on; the class
TA will be the keeper of the official list of topics chosen by the students. A student may change
to another topic if the new topic has not yet been taken by anyone. One month after the end
of the last online class session, the class will meet again (on a Monday) for a full day, in which
each student will make a brief presentation (maximum of 15 minutes using PowerPoint) of the
highlights or main ideas of his/her term paper.
The term paper topics can be selected from the list of pre-approved topics given by the faculty
at the beginning of the term. Topic selection is firstcome-first-served, with no duplication of
topics allowed.
The document should be written with MS Word. The page size should be A4, with default
margins. Choose one font from the following: Arial, Book Antiqua, Calibri, Cambria, Tahoma,
Times New Roman, Trebuchet, or Verdana. Font size should be 12. Spacing should be
double, with paragraph first-line indentation. A corresponding presentation file using
PowerPoint, adequate for a maximum 15-minute presentation, should also be prepared.
The paper should have the standard inclusions: title page, table of contents, pagination,
citations (either footnotes, endnotes, or in-text citations), and bibliography of references.
Appendices and exhibits are at the discretion of the student. Please note that Wikipedia is not
an authoritative source because it can be edited by anyone. However, it can lead the
researcher to more scholarly references through its footnotes.
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The Word document should follow the following filename format:

surname.short title.docx
The PowerPoint presentation file should follow this filename format:
surname.short title.pptx
On the designated date, the Word files will be submitted through uploading into the class
Google Drive site in the folder Individual Term Papers. On that date as well, each student will
make an online presentation of his/her paper’s highlights. This presentation will likewise be
uploaded into the class Google Drive. Everyone is encouraged to download the complete set
of class term papers for future reference.
Peer Evaluation (Individual, 25%)
A Peer Evaluation will be conducted towards the end of the course, in which an instrument
called the Peer Evaluation Form will be filled up by everyone in a group to evaluate the
performance of each groupmate (excluding oneself) using the specified scale and the
corresponding Excel file Peer Evaluation Rating. All such ratings will be sent directly to the
faculty member’s email to ensure confidentiality. The faculty will record and average
everyone’s peer ratings.
Grading System
Final grades will be computed using these components and respective weights:
Average of group report grades 35%
Individual term paper grade 40%
Peer Evaluation Rating average 25%
Final Grade 100%

Textbooks

Primary: The Economics of Health and Health Care 8th edition by Folland, Goodman,
and Stano. Pearson (2017)
Supplemental:

• The Oxford Handbook of Health Economics edited by Glied and Smith. Oxford
University Press (2011)
• Economics for Managers (3rd edition) by Farnham, Pearson (2014)
• Principles of Economics (10th edition) by Case, Fair, and Oster (2012)
•

Recommended Videos from YouTube

Microeconomics:
1. MIT 14.01SC Principles of Microeconomics lecture series (Lectures 1 to 8) by Prof.
Jonathan Gruber of MIT

2. Introduction to Health Economics by Dr. Anthony Carpenter

3. Health Economics & Measuring Health & Cost by Prof. Dyfrig Hughes, presented by
the British Pharmacological Society
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4. Health Economics by Prof. Jonathan Gruber of MIT, MIT14.01 Principles of

Microeconomics

Macroeconomics:
1. Eco 155: Principles of Macroeconomics Class 1 by Dr. David M. Mitchell, Missouri
State University Outreach

2. Eco 155: Principles of Macroeconomics Class 2 by Dr. David M. Mitchell, Missouri

State University Outreach

3. Eco 155: Principles of Macroeconomics Class 3 by Dr. David M. Mitchell, Missouri

State University Outreach

4. Eco 155: Principles of Macroeconomics Class 4 by Dr. David M. Mitchell, Missouri

State University Outreach

PRE-APPROVED TOPICS FOR THE INDIVIDUAL TERM PAPER

IN APPLIED ECONOMICS FOR THE PUBLIC SECTOR

Topic Name
1. Universal Health Care (UHC) in the Philippines; health
care financing—the role of PhilHealth and HMOs
2. Philippine health care expenditures as a percentage of
GDP over the last 20 years, in comparison with those
of our ASEAN neighbors
3. The economic and health impact of global warming and
climate change
4. The economic and health impacts of the scarcity of
fresh water
5. The economic and health impacts of the Pantawid ng
Pamilyang Pilipino Program (4Ps) or Conditional Cash
Transfer
6. Comparative Universal Health Care models from
benchmark countries (including some ASEAN
countries)
7. The economics of medical tourism
8. The health impacts of the ASEAN Regional Integration
9. The health impacts of air and water pollution
10. An evaluation of the Dengvaxia vaccination controversy:
did the benefits outweigh the risks and costs? Was the
decision to mass-vaccinate children justified, given the
information available at that time?
11. Infant and child health and mortality in the Philippines
over the last 20 years—did we meet our MDG goals?
Why or why not?
12. Maternal health and mortality in the Philippines over the
last 20 years—did we meet our MDG goals? Why or
why not?
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13. The effect of the increased “sin taxes” on alcohol and

tobacco consumption and on public health
14. Philippine mental health situation—improving or
deteriorating? The costs of addressing mental health
issues
15. The impact of patents and other intellectual property
rights on pharmaceutical prices; the Indian model of
IPR: why Indian-made pharmaceuticals are cheaper;
the TRIPS provisions of the WTO treaty
16. The effects of inflation on health-care costs and access
17. The use of digital technologies to increase health care
coverage and reduce costs
18. The health impact of the K to 12 reforms in basic
education
19. The economics of preventive health care: clean water,
sanitation, immunization, and proper nutrition
20. The economic impact of the TRAIN 1 law on health care
21. The effects of the devolution of health care to LGUs
22. Philippine population size and growth rate: an asset or a
liability? The population and health impacts of the
Reproductive Health law
23. Reducing health-care inventory planning, procurement,
and storage costs
24. Increasing the utilization rates of expensive health-care
equipment through better utilization scheduling, sharing
of resources among hospitals, and total productive
maintenance
25. The environmental, health, and economic impacts of
mining
26. The nutritional profile of the average Filipino diet and its
link with lifestyle illnesses
27. The economics and environmental impact of handling
and disposing of hospital/medical wastes
28. The economics of occupational health and safety in a
health-care institution
29. The economics of dealing with and preventing
nosocomial infections
30. Reducing energy costs in a health-care facility
31. Philippine life expectancy by region, economic class,
and gender—last 20 years and projections for the
future
32. The impact of overseas employment on individual and
family health; the health-care impacts of the migration
of health professionals
33. Poverty incidence and income inequality in the
Philippines over the last 20 years: impacts on health
34. The economic benefits of ISO 9001, ISO 14001, and
other certifications to a health-care facility
35. The economics of defeating pandemic diseases (e.g.,
HIV/AIDS, TB, malaria, dengue)
36. The high cost of medical education and training; causes
and consequences; how it can be made more
economical and affordable
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37. The economic impact of labor militancy and industrial

relations disputes in health-care institutions
38. Genetically modified food crops: do they have long-term
health impacts?
39. The UN Sustainable Development Goals for 2030 and
their impact on public health; the likelihood of the
Philippines achieving its SDG targets
40. The economics of group medical practice among
complementary specialties
41. Effects of the ban on the departure of OFW nurses and
other health care workers during the pandemic
42. Price discrimination in medical and other health care
services: pros and cons
43. Economic impacts of the COVID19 pandemic
quarantine lockdowns
44. Long-run effects of the COVID19 pandemic on
Philippine economic development, education, and
health care
45. Vaccination economics and the achievement of herd
immunity
46. The economic impact of “ayuda” or cash aid during the
pandemic

Requirements for the Individual Term Paper

1. The term paper topics can be selected from the list of pre-approved topics given by
the faculty at the beginning of the term. Topic selection is first-come-first-served, with
no duplication of topics allowed.

2. The document should be written with MS Word. The page size should be A4, with
default margins. Choose one font from the following: Arial, Book Antiqua, Calibri,
Cambria, Tahoma, Times New Roman, Trebuchet, or Verdana. Font size should be
12. Spacing should be double, with paragraph first-line indentation. A corresponding
presentation file using PowerPoint, adequate for a maximum 15-minute presentation,
should also be prepared.

3. The paper should have the standard inclusions: title page, table of contents,
pagination, citations (either footnotes, endnotes, or text citations), and bibliography of
references. Appendices and exhibits are at the discretion of the student. Please note
that Wikipedia is not an authoritative source because it can be edited by anyone.
However, it can lead the researcher to more scholarly references through its footnotes.

4. The Word document should follow the following filename format: surname.short
title.docx. The PowerPoint presentation file should follow this filename format:
surname.short title.pptx.

5. On the designated date, the Word files will be submitted through uploading into the
class Google Drive site in the folder Individual Term Papers. On that date as well, each
student will make an online presentation of his/her paper’s highlights. This presentation
will likewise be uploaded into the class Google Drive. Everyone is encouraged to
download the complete set of class term papers for future reference.

Enrico C. Mina, DBA

June 11, 2023