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  3. American Economic Journal: Economic Policy
  4. May 2016
  5. Capacity and Utilization in Health Care: The Effect of Empty Beds on Neonatal Intensive Care Admission

Capacity and Utilization in Health Care: The Effect of Empty Beds on Neonatal Intensive Care Admission

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Abstract

Because geographic variation in medical care utilization is jointly determined by both supply and demand, it is difficult to empirically estimate whether capacity itself has a causal impact on utilization in health care. In this paper, I exploit short-term variation in Neonatal Intensive Care Unit (NICU) capacity that is unlikely to be correlated with unobserved demand determinants. I find that available NICU beds have little to no effect on NICU utilization for the sickest infants, but do increase utilization for those in the range of birth weights where admission decisions are likely to be more discretionary. (JEL I11, I12, I18, J13)

Citation

Freedman, Seth. 2016. "Capacity and Utilization in Health Care: The Effect of Empty Beds on Neonatal Intensive Care Admission." American Economic Journal: Economic Policy, 8 (2): 154-85. DOI: 10.1257/pol.20120393

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JEL Classification

  • I11 Analysis of Health Care Markets
  • I12 Health Behavior
  • I18 Health: Government Policy; Regulation; Public Health
  • J13 Fertility; Family Planning; Child Care; Children; Youth
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