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

Grants 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

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

Ody, ChristopherDavid Dranove and Craig Garthwaite. 2014. Health Spending Slowdown Is Mostly Due To Economic Factors, Not Structural Change In The Health Care Sector. Health Affairs. 33(8): 1399-1406.
Garthwaite, Craig. 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.
Dranove, DavidCraig Garthwaite and Christopher Ody. 2014. Health Spending Slowdown is Mostly Due to Economic Factors. Health Affairs. 33(8): 1399-1406.
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 Christopher Ody. 2015. Medicare Spending and the Recession.
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. The Black/White Education Gap, Stalled Profess, and the Long-Term Consequences of the Emergence of Crack Markets.
Dranove, DavidCraig Garthwaite and Manuel Hermosilla. 2014. Breakthrough or Me-Too? The Impact of Medicare Part D on Biotech Innovation.
Dranove, David, Bingyang Li, Craig Garthwaite and Christopher Ody. 2015. Investment Subsidies and the Adoption of Electronic Medical Records in Hospitals.
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.
Garthwaite, CraigMeghan BusseJennifer Brown and Greg Merkley. 2011. Starbucks: A Story of Growth. Case 5-211-259 (KEL665).

Print Teaching
Full-Time / Part-Time MBA
Business Strategy (MGMT-431-0)

This course counts toward the following majors: Management & Strategy

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.