Craig Garthwaite
Craig Garthwaite

Associate Professor of Strategy
Herman Smith Research Professor in Hospital and Health Services Management
Director of Health Enterprise Management Program (HEMA)

Print Overview

Professor Garthwaite is an Associate Professor of Strategy and the Director of Kellogg's Health Enterprise Management Program (HEMA). He is an applied microeconomist whose research examines the effects of government policies and social phenomena with a focus on health and biopharmaceutical sectors. His recent work has focused on the private sector effects of the Affordable Care Act, including the labor supply effects of large insurance expansions, the changes in uncompensated hospital care resulting from public insurance expansions, and the responses of non-profit hospitals to financial shocks. In prior work, he has examined the impact of government cash assistance programs on health and the effect of changes in expected mortality from the emergence of crack-cocaine markets on educational attainment.

Professor Garthwaite also studies questions of pricing and innovation in the biopharmaceutical sector. In this area he has examined the effect of expanded patent protection on pricing in the Indian pharmaceutical market, the innovation response of United States pharmaceutical firms to increases in demand, and the relationship between health insurance expansions and high drug prices. 

His research has appeared in journals such as the Quarterly Journal of Economics, the American Economic Review, the Review of Economics and Statistics and Health Affairs and has been profiled in media outlets such as the Wall Street Journal, the Washington Post and Vox. He has also appeared as a guest on various television and radio shows such as Nightly Business Report and NPR Marketplace. In 2015, Professor Garthwaite was named one of Poet and Quants 40 Best under 40 Business School Professors.   

Garthwaite received a B.A. and a Masters in Public Policy from the University of Michigan and his PhD in Economics from the University of Maryland.  Prior to receiving his PhD, he served in a variety of public policy positions including the Director of Research for the Employment Policies Institute. He has testified before the United States House of Representatives and several state legislatures on matters related to the minimum wage and health care reforms.

Print Vita
PhD, 2009, Economics, University of Maryland, College Park
MA, 2008, Economics, University of Maryland, College Park
MPP, 2001, Public Policy, Gerald R. Ford School of Public Policy, University of Michigan
BA, 2000, Political Science, University of Michigan, cum laude

Academic Positions
Assistant Professor of Management and Strategy, Kellogg School of Management, Northwestern University, 2010-present, 2010-present
Senior Lecturer of Management & Strategy, Donald P. Jacobs Scholar, Management & Strategy, Kellogg School of Management, Northwestern University, 2009-present

Other Professional Experience
Director of Research and Chief Economist, Employment Policies Institute, 2003-2005
Economist, Public Sector Consultants, 2002-2003

Honors and Awards
Faculty Impact Teaching Award (2 Sections), Kellogg, One Term
Chairs' Core Course Teaching Award, Kellogg, One Year
Young Economist Award, International Institute of Public Finance, 2011
Impact Award, Kellogg School of Management, 2010

Editorial Positions
Co-Editor, Journal of Public Economics, 2016

Print Research
Research Interests
Health Economics; Pharmaceutical Industry; Public Finance; Political Economy

Garthwaite, Craig and Austin Frakt. 2018. The CVS–Aetna Merger: Another Large Bet on the Changing U.S. Health Care Landscape. Annals of Internal Medicine.
Garthwaite, Craig and Amitabh Chandra. 2017. The Economics of Indication Based Pricing. New England Journal of Medicine. 377: 103-106.
Garthwaite, Craig and John Graves. 2017. Success and Failure in the Insurance Exchanges. New England Journal of Medicine.
Garthwaite, Craig, John Graves, Matthew Notowidigdo and Tal Gross. 2017. Insurance Expansion and Hospital Emergency Department Access: Evidence from the Affordable Care Act. Annals of Internal Medicine.
Dranove, DavidCraig Garthwaite and Christopher Ody. 2016. Uncompensated Care Decreased At Hospitals In Medicaid Expansion States But Not At Hospitals In Nonexpansion States. Health Affairs. 35(8): 1471-1479.
Dranove, DavidCraig Garthwaite and Christopher Ody. 2015. Investment Subsidies and the Adoption of Electronic Medical Records in Hospitals. Journal of Health Economics. 44: 309-319.
Dranove, DavidCraig Garthwaite and Christopher Ody. 2015. The Economic Downturn And Its Lingering Effects Reduced Medicare Spending Growth By $4 Billion In 2009-12. Health Affairs. 34(8): 1368-1375.
Dranove, DavidCraig Garthwaite and Christopher Ody. 2014. Health Spending Slowdown Is Mostly Due To Economic Factors, Not Structural Change In The Health Care Sector. Health Affairs. 33(8): 1399-1406.
Dranove, DavidCraig Garthwaite and Christopher Ody. 2015. Understanding the Lingering Effects of the Economic Downturn on Slowing Medicare Spending Growth. Health Affairs.
Dranove, DavidCraig Garthwaite and Christopher Ody. 2017. How Do Non-Profits Respond to Negative Wealth Shocks? The Impact of the 2008 Stock Market Crash on Hospitals. RAND Journal of Economics. 48(2): 485–525.
Garthwaite, Craig, William Evans and Tim Moore. 2015. The Black/White Education Gap, Stalled Profess, and the Long-Term Consequences of the Emergence of Crack Markets. Review of Economics and Statistics. 98(5): 832-847.
Garthwaite, Craig, matthew notowidigdo and Tal Gross. 2018. Hospitals as Insurers of Last Resort. American Economic Journal: Applied Economics. 10(1): 1-39.
Garthwaite, Craig. 2015. Demand Spillovers, Combative Advertising, and Celebrity Endorsements. American Economic Journal: Applied Economics.
Garthwaite, Craig, Tal Gross and Matt Notowidigdo. 2014. Public Health Insurace, Labor Supply, and Employment Lock.. Quarterly Journal of Economics.
Garthwaite, Craig and William Evans. 2013. Giving Mom a Break: The Effect of Higher EITC Payments on Maternal Health. American Economic Journal: Economic Policy.
Garthwaite, Craig, Mark Duggan and Aparajita Goyal. 2016. The Market Impacts of Product Patents in Developing Countries: The Case of India. American Economic Review. 106(1)
Garthwaite, Craig and Tim Moore. 2013. Can Celebrity Endorsements Affect Political Outcomes: Evidence from the 2008 US Democratic Presidential Primary. Journal of Law, Economics, & Organization. 29(2): 355-384.
Garthwaite, Craig and William Evans. 2012. Heterogeneity in the Benefits of Greater Treatment Intensity. Review of Economics and Statistics. 94(3): 635-649.
Garthwaite, Craig. 2012. The Doctor Might See You Now: The Supply Side of Public Health Insurance Expansions. American Economic Journal: Economic Policy. 4(3): 190-217.
Garthwaite, Craig. 2012. The Economic Benefits of Pharmaceutical Innovations: The Case of Cox-2 Inhibitors. American Economic Journal: Applied Economics. 4(3): 116-137.
Garthwaite, Craig, William Evans and Heng Wei. 2008. The Impact of Early Discharge Laws on the Health of Newborns. Journal of Health Economics. 27: 843-870.
Garthwaite, Craig and Mark Duggan. 2010. Empirical Evidence on the Value of Pharmaceuticals. The [Oxford] Handbook of the Economics of the Biopharmaceutical Industry.
Working Papers
Garthwaite, Craig, Amitabh Chandra and Ariel Dora Stern. 2017. Characterizing the Drug Development Pipeline for Precision Medicines.
Chown, JillianDavid Dranove and Craig Garthwaite. 2018. Labor Cost Savings from Single Payer Healthcare May Be Harder to Achieve than Some Expect.
Dranove, DavidCraig Garthwaite and David Besanko. 2017. Insurance Access and Demand Response: Pricing and Welfare Implications.
Dranove, DavidCraig Garthwaite and Manuel Hermosilla. 2014. Market Conditions and the Nature of Innovation: Evidence from the Biotechnology Sector (formerly PHARMACEUTICAL PROFITS AND THE SOCIAL VALUE OF INNOVATION).
Garthwaite, Craig. 2008. The Effect of In-Utero Conditions on Long Term Health: Evidence from the 1918 Spanish Flu Pandemic.
Book Chapters
Garthwaite, Craig and Mark Duggan. 2012. "Empirical Evidence on the Value of Pharmaceuticals." In The [Oxford] Handbook of the Economics of the Biopharmaceutical Industry, 463-492. Oxford, UK: Oxford University Press.
Dranove, DavidCraig Garthwaite and Christopher Ody. "The Impact of the ACAs Medicaid Expansion on Hospitals Uncompensated Care Burden and the Potential Effects of Repeal." The Commonwealth Fund Issue Brief.
Dranove, DavidCraig Garthwaite and Christopher Ody. "A floor-and-trade proposal to improve the delivery of charity-care services by U.S. nonprofit hospitals." Hamilton Project Discussion Paper.
Busse, Meghan and Craig Garthwaite. 2014. Sovaldi: Pricing a Breakthrough Drug.
Garthwaite, CraigMeghan Busse and Greg Merkley. 2011. Starbucks: A Story of Growth. Case 5-211-259 (KEL665).
Brown, Jennifer, Craig Garthwaite, Susan Crowe, Charlotte Snyder and Greg Merkley. 2016. Global Aircraft Manufacturing, 2002–2011. Case 5-312-505 (KEL938).

Print Teaching
Full-Time / Evening & Weekend MBA
Field Study (KIEI-498-0)
Field Studies include those opportunities outside of the regular curriculum in which a student is working with an outside company or non-profit organization to address a real-world business challenge for course credit under the oversight of a faculty member.

Health Economics II (MECS-551-2)
This course will expose students to both seminal and cutting edge research in health economics.The pedagogy includes lecture, student presentations of research papers, and original student projects. Prerequisites: ECON 410-1,2,3 (Microeconomics); ECON 480-1,2,3, (Introduction to Econometrics); MECS 551-1 is required before enrolling in MECS 551-2.

Business Strategy (STRT-431-0)
This course was formerly known as MGMT 431
Strategy is the set of objectives, policies and resource commitments that collectively determine how a business positions itself to create wealth for its owners. This course introduces students to principles and conceptual frameworks for evaluating and formulating business strategy. Topics include the boundaries of the firm, the analysis of industry economics, strategic positioning and competitive advantage, and the role of resources and capabilities in shaping and sustaining competitive advantages.

Healthcare Strategy (STRT-443-0)

**This course was formerly known as STRT-945**

This course delves into the strategic issues faced by healthcare firms. We will use concepts from the core strategy course (STRT-431) as an organizing framework, and discuss where and why the healthcare sector deviates from the norm. For example, what is the role of competitive positioning when quality is so difficult to measure? How can you remain profitable if you compete against not-for-profits who don't face taxes?

Because a great deal of healthcare strategy relies on understanding the nitty-gritty of particular industries, we will spend time learning about several of these, including health insurance, hospitals, pharmaceuticals, and medical devices. Although our focus is on private firms in the U.S., we will (of necessity) be discussing the role of the government in regulating and providing healthcare, and (time permitting) discuss some international issues. This is a lecture and case-based discussion course with group projects and a final exam.

Executive MBA
Frameworks for Strategic Analysis (STRTX-430-A)

U.S. Healthcare Strategy (STRTX-945-0)