Replication data for: Input Constraints and the Efficiency of Entry: Lessons from Cardiac Surgery
Principal Investigator(s): View help for Principal Investigator(s) David M. Cutler; Robert S. Huckman; Jonathan T. Kolstad
Version: View help for Version V1
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Project Citation:
Cutler, David M., Huckman, Robert S., and Kolstad, Jonathan T. Replication data for: Input Constraints and the Efficiency of Entry: Lessons from Cardiac Surgery. Nashville, TN: American Economic Association [publisher], 2010. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-13. https://doi.org/10.3886/E114730V1
Project Description
Summary:
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Prior studies suggest that with elastically supplied inputs free entry
may lead to an inefficiently high number of firms in equilibrium.
Under input scarcity, however, the welfare loss from free entry is
reduced. Further, free entry may increase use of high-quality inputs,
as oligopolistic firms underuse these inputs when entry is constrained.
We assess these predictions by examining how the 1996
repeal of certificate-of-need (CON ) legislation in Pennsylvania
affected the market for cardiac surgery in the state. We show that
entry led to a redistribution of surgeries to higher quality surgeons,
and that this entry was approximately welfare neutral. (JEL I11, L13)
Scope of Project
JEL Classification:
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I11 Analysis of Health Care Markets
L13 Oligopoly and Other Imperfect Markets
I11 Analysis of Health Care Markets
L13 Oligopoly and Other Imperfect Markets
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