Geographic Variation in Commercial Medical Care Expenditures: A Decomposition Between Price and Utilization

Abe Dunn, Adam Shapiro and Eli Liebman

BEA Working Papers from Bureau of Economic Analysis

Abstract: This study examines geographic variation in commercial medical care expenditures. Medical care expenditures are decomposed between service prices and service utilization. We find that both service prices and utilization contribute to overall differences in health spending across geographic markets. Our findings suggest that potential expenditure savings may be possible from more efficient utilization. However, the large variation in underlying service prices suggests that deviations in overall spending may persist, even if utilization differences across markets are diminished.

JEL-codes: E6 (search for similar items in EconPapers)
Date: 2011-07
New Economics Papers: this item is included in nep-hea
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Citations: View citations in EconPapers (15)

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Persistent link: https://EconPapers.repec.org/RePEc:bea:wpaper:0075

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