Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
7363175 | Journal of Health Economics | 2016 | 31 Pages |
Abstract
This paper takes a different approach to estimating demand for medical care that uses the negotiated prices between insurers and providers as an instrument. The instrument is viewed as a textbook “cost shifting” instrument that impacts plan offerings, but is unobserved by consumers. The paper finds a price elasticity of demand of around â0.20, matching the elasticity found in the RAND Health Insurance Experiment. The paper also studies within-market variation in demand for prescription drugs and other medical care services and obtains comparable price elasticity estimates.
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Authors
Abe Dunn,