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Willingness to Pay for Hospital Access in Areas with High Concentrations of Blacks

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  • David Christafore

    (University of California, Riverside)

  • Susane Leguizamon

    (Western Kentucky University)

Abstract

We estimate the willingness to pay (WTP) of individuals to have increased spatial access to hospitals using a spatial hedonic price model. Employing a dataset of 6,093 observations at the census block group level, we find that the WTP of individuals to live one mile closer to a hospital is positive if the hospital is a designated public hospital, lower for private hospitals, and insignificant for nonprofit hospitals. Areas comprised of a relatively large population of black residents value spatial access significantly more and, for higher concentrations, exhibit a positive WTP for all hospital types. This is likely due to increased transportation costs of individuals in minority areas.

Suggested Citation

  • David Christafore & Susane Leguizamon, 2015. "Willingness to Pay for Hospital Access in Areas with High Concentrations of Blacks," The Review of Regional Studies, Southern Regional Science Association, vol. 45(1), pages 87-104, Spring.
    • Handle: RePEc:rre:publsh:v45:y:2015:i:1:p:87-104
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    More about this item

    Keywords

    health care; housing markets; cost-benefit analysis;
    All these keywords.

    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • R53 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Public Facility Location Analysis; Public Investment and Capital Stock

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