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 the contribution of regional increasing returns. In Medicare, 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 estimate regional quality based on patients’ travel choices, and these revealed-preference estimates align with clinical outcomes. Demographic-based instruments and a case study show that greater local demand increases quality and exports, consistent with economies of scale. We study counterfactual policies that 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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Citations: View citations in EconPapers (6)

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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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