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Economic Evaluation I

East Baltimore
1st term
Health Policy and Management
3 credits
Academic Year:
2021 - 2022
Instruction Method:
Class Times:
  • M W,  3:30 - 4:50pm
Auditors Allowed:
Grading Restriction:
Letter Grade or Pass/Fail
Course Instructor:
Jeromie Ballreich

Prior coursework in microeconomics, or concurrent registration in Introduction to Microeconomics (221.619.01) or Applied Microeconomics for Policymaking (318.603.01).


Cost-effectiveness analysis (CEA) is a multidisciplinary science which aims to systematically and rigorously compare health interventions to reach optimal decision-making. Rooted in economic theory, decision science and statistics, CEA (and related methodologies) continue to evolve into a diverse toolkit of techniques that allow us to better quantify costs and effects of healthcare technologies and public health interventions.

Presents an introduction to the theory, methods, and application of economic evaluation in health care. Provides a specific focus on cost-effectiveness analysis, with an emphasis on identifying and measuring outcomes, understanding incremental cost-effectiveness ratios (ICERs), conducting sensitivity analyses, and incorporating time preferences. Considers decisions about the allocation of funds to different population segments or different types of programs, and to programs with great benefit for a few versus modest benefit for many. Prepares students for advanced topics in Economic Evaluation II-IV.

Learning Objectives:

Upon successfully completing this course, students will be able to:

  1. Recognize commonly used methods of economic evaluation, their main features, and appropriate use to enhance decision-making and inform policy
  2. Describe the role of economic evaluation in health policy and allocation of health care resources
  3. Explain the concept of “value” in health care from the perspective of economic theory
  4. Read and critique a published report of an economic evaluation with reference to the statement of the problem, sources of data, methods, and presentation of findings
Methods of Assessment:

This course is evaluated as follows:

  • 40% Homework
  • 30% Midterm
  • 30% Final Project

Enrollment Restriction:

Enrollment restricted to MHS/HEOR students in HPM only

Instructor Consent:

Consent required for all students

Consent Note:

Consent required for all students

For consent, contact:

Special Comments:

This course is targeted towards students who will take the full three-course sequence Economic Evaluation I-III. Students who are instead interested in a less-rigorous survey course should take the online course Introduction to Economic Evaluation (313.790.81). Prior or concurrent coursework in basic microeconomic theory will enable participants to gain deeper understanding of course material.