Sources of Geographic Variation in Health Care: Evidence From PatientMigration

Amy Finkelstein, Matthew Gentzkow and Heidi Williams ()

The Quarterly Journal of Economics, 2016, vol. 131, issue 4, 1681-1726

Abstract: We study the drivers of geographic variation in U.S. health care utilization, using an empirical strategy that exploits migration of Medicare patients toseparate the role of demand and supply factors. Our approach allows us toaccount for demand differences driven by both observable and unobservablepatient characteristics. Within our sample of over-65 Medicare beneficiaries, wefind that 40–50% of geographic variation in utilization is attributable todemand-side factors, including health and preferences, with the remainder due toplace-specific supply factors.

Date: 2016
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Working Paper: Sources of Geographic Variation in Health Care: Evidence from Patient Migration (2014)
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