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Family Spillover Effects of Marginal Diagnoses: The Case of ADHD

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  • Petra Persson
  • Xinyao Qiu
  • Maya Rossin-Slater

Abstract

The health care system uses patient family medical history in many settings, and this practice is widely believed to improve the efficiency of health care allocation. This paper provides a counterpoint by documenting that reliance on hereditary information can amplify the misallocation of low-value care. We study Attention Deficit Hyperactivity Disorder, and show that reliance on family medical history generates a "snowball effect"—the propagation of an original marginal diagnosis to a patient's relatives. This snowball effect raises the private and social costs of low-value care.

Suggested Citation

  • Petra Persson & Xinyao Qiu & Maya Rossin-Slater, 2025. "Family Spillover Effects of Marginal Diagnoses: The Case of ADHD," American Economic Journal: Applied Economics, American Economic Association, vol. 17(2), pages 225-256, April.
    • Handle: RePEc:aea:aejapp:v:17:y:2025:i:2:p:225-56
    DOI: 10.1257/app.20230303
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    References listed on IDEAS

    as
    1. Manasi Deshpande & Michael Mueller-Smith, 2022. "Does Welfare Prevent Crime? the Criminal Justice Outcomes of Youth Removed from Ssi [“Misdemeanor Prosecution,”]," The Quarterly Journal of Economics, Oxford University Press, vol. 137(4), pages 2263-2307.
    2. Manasi Deshpande & Michael G. Mueller-Smith, 2022. "Does Welfare Prevent Crime? The Criminal Justice Outcomes of Youth Removed From SSI," NBER Working Papers 29800, National Bureau of Economic Research, Inc.
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    More about this item

    JEL classification:

    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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