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Project Citation: 

Ho, Kate, and Pakes, Ariel. Replication data for: Hospital Choices, Hospital Prices, and Financial Incentives to Physicians. Nashville, TN: American Economic Association [publisher], 2014. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-11. https://doi.org/10.3886/E112712V1

Project Description

Summary:  View help for Summary We estimate an insurer-specific preference function which rationalizes hospital referrals for privately insured births in California. The function is additively separable in: a hospital price paid by the insurer, the distance traveled, and plan- and severity-specific hospital fixed effects (capturing hospital quality). We use an inequality estimator that allows for errors in price and detailed hospital-severity interactions and obtain markedly different results than those from a logit. The estimates indicate that insurers with more capitated physicians are more responsive to price. Capitated plans send patients further to utilize similar quality, lower-priced hospitals; but the cost-quality trade-off does not vary with capitation rates. (JEL G22, H51, I11, I13, I18, J44)

Scope of Project

JEL Classification:  View help for JEL Classification
      G22 Insurance; Insurance Companies; Actuarial Studies
      H51 National Government Expenditures and Health
      I11 Analysis of Health Care Markets
      I13 Health Insurance, Public and Private
      I18 Health: Government Policy; Regulation; Public Health
      J44 Professional Labor Markets; Occupational Licensing


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