Craig Garthwaite
Craig Garthwaite

Assistant Professor of Strategy

Print Overview

Professor Garthwaite joined the faculty at the Kellogg School of Management in 2009. He is an applied microeconomist whose research examines the effects of government policies and social phenomena with a focus on the health sector. He has examined the labor supply effects of the Affordable Care Act, the reactions of non-profit hospitals to financial shocks, the economic benefits of health care innovations, and the changes in physician labor supply following large public health insurance expansions. He has also estimated the role of the emergence of crack cocaine markets in increasing the black-white education gap and the causal effect of cash transfers from government programs on health outcomes. Garthwaite also conducts research on the effects of celebrity endorsements, including estimating the impact of Oprah Winfrey’s endorsement of President Barack Obama during the 2008 Democratic primary and the spillover sales effects across cobranded products from prominent celebrity endorsements.

Garthwaite received a B.A. and a Masters in Public Policy from the University of Michigan. Prior to receiving his PhD in Economics from the University of Maryland, 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 at College Park
MA, 2008, Economics, University of Maryland at 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

Dranove, DavidCraig Garthwaite and Christopher Ody. 2015. Investment Subsidies and the Adoption of Electronic Medical Records in Hospitals. Journal of Health Economics.
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.
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 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.
Working Papers
Dranove, DavidCraig Garthwaite and David Besanko. 2016. The Impact of Health Insurance on Pharmaceuticals Pricing When Consumers Face Liquidity Constraints.
Dranove, DavidCraig Garthwaite and Christopher Ody. 2015. How Do Non-Profits Respond to Negative Wealth Shocks? The Impact of the 2008 Stock Market Crash on Hospitals.
Garthwaite, Craig, William Evans and Tim Moore. Forthcoming. The Black/White Education Gap, Stalled Profess, and the Long-Term Consequences of the Emergence of Crack Markets.
Garthwaite, Craig, matthew notowidigdo and Tal Gross. 2015. Non-Profit Hospitals as Insurers of Last Resort.
Dranove, DavidCraig Garthwaite and Manuel Hermosilla. 2014. Breakthrough or Me-Too? The Impact of Medicare Part D on Biotech 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. "A floor-and-trade proposal to improve the delivery of charity-care services by U.S. nonprofit hospitals." Hamilton Project Discussion Paper.
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
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-945-0)

**This course was formerly known as MGMT-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
U.S. Healthcare Strategy (STRTX-945-0)