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Sources of Geographic Variation in Health Care: Evidence From PatientMigration

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  • Amy Finkelstein
  • Matthew Gentzkow
  • Heidi Williams

Abstract

We study the drivers of geographic variation in U.S. health care utilization, using an empirical strategy that exploits migration of Medicare patients toseparate the role of demand and supply factors. Our approach allows us toaccount for demand differences driven by both observable and unobservablepatient characteristics. Within our sample of over-65 Medicare beneficiaries, wefind that 40–50% of geographic variation in utilization is attributable todemand-side factors, including health and preferences, with the remainder due toplace-specific supply factors.

Suggested Citation

  • Amy Finkelstein & Matthew Gentzkow & Heidi Williams, 2016. "Sources of Geographic Variation in Health Care: Evidence From PatientMigration," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 131(4), pages 1681-1726.
    • Handle: RePEc:oup:qjecon:v:131:y:2016:i:4:p:1681-1726.
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    More about this item

    JEL classification:

    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • I1 - Health, Education, and Welfare - - Health
    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets

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