Market Size and Trade in Medical Services

Jonathan Dingel, Joshua Gottlieb, Maya Lozinski and Pauline Mourot

No 31030, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We uncover substantial interregional trade in medical services and investigate whether regional increasing returns explain it. In Medicare data, one-fifth of production involves a doctor treating a patient from another region. Larger regions produce greater quantity, quality, and variety of medical services, which they “export” to patients from elsewhere, especially smaller regions. We show that these patterns reflect scale economies: greater demand enables larger regions to improve quality, so they attract patients from elsewhere. Despite concerns about rural access, larger regions have higher marginal returns to spending. We study counterfactual policies that would lower travel costs rather than relocating production.

JEL-codes: F12 F14 I11 R12 (search for similar items in EconPapers)
Date: 2023-03
New Economics Papers: this item is included in nep-des, nep-geo, nep-hea, nep-ind, nep-int and nep-ure
Note: AG EH ITI PE PR
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Working Paper: Market Size and Trade in Medical Services (2023)
Working Paper: Market Size and Trade in Medical Services (2023)
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