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Quarterly Journal of Economics 2016 131(2), i3-i3
Journal Article Subscription Page Get access The Quarterly Journal of Economics, Volume 131, Issue 2, May 2016, Page i3, https://doi.org/10.1093/qje/qjv050 Published: 19 May 2016

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Quarterly Journal of Economics 2016 131(3), i3-i3
Journal Article Subscription Page Get access The Quarterly Journal of Economics, Volume 131, Issue 3, August 2016, Page i3, https://doi.org/10.1093/qje/qjv055 Published: 25 July 2016

Sources of Geographic Variation in Health Care: Evidence From Patient Migration*

Amy Finkelstein; Matthew Gentzkow; Heidi Williams
Quarterly Journal of Economics 2016 131(4), 1681-1726 open access
We study the drivers of geographic variation in US health care utilization, using an empirical strategy that exploits migration of Medicare patients to separate the role of demand and supply factors. Our approach allows us to account for demand differences driven by both observable and unobservable patient characteristics. Within our sample of over-65 Medicare beneficiaries, we find that 40-50 percent of geographic variation in utilization is attributable to demand-side factors, including health and preferences, with the remainder due to place-specific supply factors. JEL: H51, I1, I11.

The Liquidity Premium of Near-Money Assets*

Stefan Nagel
Quarterly Journal of Economics 2016 131(4), 1927-1971
Abstract This article examines the link between the opportunity cost of money and time-varying liquidity premia of near-money assets. Higher interest rates imply higher opportunity costs of holding money and hence a higher premium for the liquidity service benefits of assets that are close substitutes for money. Consistent with this theory, short-term interest rates in the United States, United Kingdom, and Canada have a strong positive relationship with the liquidity premium of Treasury bills and other near-money assets over periods going back to the 1920s. Once the opportunity cost of money is taken into account, Treasury security supply variables lose their explanatory power for the liquidity premium, except for transitory short-run effects. These findings indicate a high elasticity of substitution between money and near-money assets. As a consequence, a central bank that follows an interest rate operating target not only elastically accommodates and neutralizes shocks to money demand, but effectively also shocks to near-money asset supply and demand.