Econometric Evaluation of Health Policies

Abstract

This article devotes considerable attention to new econometric methodologies that have been used to assess health care econometrics. The goal of evaluative research is to identify the causal impact of an intervention on outcomes of interest and to understand the mechanisms underlying this impact. This article addresses a two-fold interest, in the evaluation of a particular treatment as well as in the evaluation of a broader policy intervention or program, such as a ban on smoking in public places or a reform of provider reimbursement. It refers to individuals as the target of the policy interventions. It mentions that selection on treatment is based only on observables. Ex post evaluation is crucial in understanding the true impact of a treatment or policy. This article outlines approaches to the ex post evaluation of treatment effects by comparing outcomes across suitably constructed treatment and control groups.