Physicians and the Production of Health: Returns to Health Care during the Mortality Transition

Helge Liebert and Beatrice Mäder ()
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Beatrice Mäder: University of St. Gallen

No 15220, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper investigates the returns to health care provision during the mortality transition. We construct a new panel data set covering German municipalities from 1928 to 1936. The endogeneity of health care supply is addressed by using the expulsion of Jewish physicians from statutory health insurance as exogenous variation in regional physician supply. Increases in the supply of physicians reduce infant mortality and mortality from common childhood diseases. Using a semiparametric control function approach, we find diminishing marginal returns to health care provision. The results are consistent with historical trends in infant mortality over the 20th century.

Keywords: mortality transition; health care supply; physicians; infant mortality; semiparametric IV (search for similar items in EconPapers)
JEL-codes: I10 I18 N34 (search for similar items in EconPapers)
Pages: 76 pages
Date: 2022-04
New Economics Papers: this item is included in nep-eff, nep-hea, nep-his and nep-lma
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Published - published online in: Review of Economics and Statistics , 22 August 2024

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Working Paper: Physicians and the Production of Health: Returns to Health Care During the Mortality Transition (2022)
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