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Assessing the degree of competitiveness in the market for outpatient hospital services

Iryna Topolyan, David Brasington () and Xu Xu

Journal of Economics and Business, 2019, vol. 105, issue C

Abstract: We assess the level of competition in the market for outpatient hospital services in the State of California using popular new empirical industrial organization measures, such as the Bresnahan-Lau method, Lerner index, and the Boone indicator. We match county-level data from Area Health Resources Files (AHRF) with hospital-level data from the California’s Office of Statewide Health Planning and Development (OSHPD). All three methods suggest that hospitals enjoy substantial market power. The relationship between the degree of spatial competition and the average markups is rather weak.

Keywords: Market structure; Outpatient services; Bresnahan-Lau model; Lerner index; Boone indicator (search for similar items in EconPapers)
JEL-codes: D40 I11 L10 (search for similar items in EconPapers)
Date: 2019
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DOI: 10.1016/j.jeconbus.2019.03.002

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