This research review discusses some of the most influential literature in the area of empirical health economics. Health economics provides empirical evidence to aid decision-making across a broad spectrum of issues in health and health care. This evidence is often derived from econometric methods. This literature analysis covers landmark contributions to the development and application of these methods which span the field, ranging from structural models, models for health care costs and other microeconometric approaches, including bayesian methods, longitudinal data, applications to health technology assessment, along with field experiments and policy evaluation. This review will be of interest to economic researchers and students as well as health scholar's wishing to explore the development of modern econometrics applied to health policy.