Quarterly Journal of Economics Vol. 131 No. 4 2016

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

Amy Finkelstein^1,2; Matthew Gentzkow^1,3; Heidi Williams^1,2

¹ National Bureau of Economic Research · ² Massachusetts Institute of Technology · ³ Stanford University

Abstract

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.

DOI

10.1093/qje/qjw023

Volume

131

Issue

4

Pages

1681-1726

Language

en

Sources

openalex bibtex:phds-export.bib crossref

Cite

APA 7 MLA 9 Chicago (author–date) Harvard Elsevier Harvard (JFE, JBF…) The Accounting Review Academy of Management American Marketing Association INFORMS (Management Science) Copy citation Copied ✓