Health economics is receiving more attention as decision-makers--whether purchaser, physician, or patient--are looking for a more comprehensive understanding of the impact of adopting new healthcare strategies. In this article we review the recent advances in the health economics of asthma and allergy. In burden of illness studies, estimates of the economic burden of asthma and allergy were reported from countries and regions not previously detailing these costs. There were economic evaluations comparing medications and those that evaluated disease management programs. The recent studies of pharmaceuticals have focused on evaluating the cost-effectiveness of various controller medications for the treatment of asthma. Although mostly observational, such studies increase the evidence that these medications are relatively cost-effective. A few recent economic evaluations have been published examining disease management and education programs. These studies are generally long-term evaluations and have not shown consistent health economic impact. The field of health economics in asthma and allergy continues to evolve and aims to provide information to aid in decision making.