The Role of Hospital Heterogeneity in Measuring Marginal Returns to Medical Care: A Reply to Barreca, Guldi, Lindo, and Waddell
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Doyle_The role of hospital.pdf
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Author(s) • • •
Almond, Douglas
Doyle, Joseph J.
Kowalski, Amanda E.
Williams, Heidi L.
Date Issued
October 2011
Journal
Quarterly Journal of Economics
Publisher
Oxford University Press
Citation
Almond, D. et al. “The Role of Hospital Heterogeneity in Measuring Marginal Returns to Medical Care: A Reply to Barreca, Guldi, Lindo, and Waddell.” The Quarterly Journal of Economics 126.4 (2011): 2125–2131. Web.
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Author's final manuscript
Abstract
In Almond et al. (2010), we describe how marginal returns to medical care can be estimated by comparing patients on either side of diagnostic thresholds. Our application examines at-risk newborns near the very low birth weight threshold at 1500 g. We estimate large discontinuities in medical care and mortality at this threshold, with effects concentrated at “low-quality” hospitals. Although our preferred estimates retain newborns near the threshold, when they are excluded the estimated marginal returns decline, although they remain large. In low-quality hospitals, our estimates are similar in magnitude regardless of whether these newborns are included or excluded.
MIT Department
Massachusetts Institute of Technology. Department of Economics
Sloan School of Management
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DOI of Published Version
https://doi.org/10.1093/qje/qjr037