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Hospital treatment rates and spillover effects: Does ownership matter?

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  • Baltagi, Badi H.
  • Yen, Yin-Fang

Abstract

This paper studies the effect of hospital ownership on treatment rates allowing for spatial correlation among hospitals. Competition among hospitals and knowledge spillovers generate significant externalities which we try to capture using the spatial Durbin model. Using a panel of 2342 hospitals in the 48 continental states observed over the period 2005 to 2008, we find significant spatial correlation of medical service treatment rates among hospitals. We also get mixed results on the effect of hospital ownership on treatment rates that depends upon the market structure where the hospital is located and which varies by treatment type.

Suggested Citation

  • Baltagi, Badi H. & Yen, Yin-Fang, 2014. "Hospital treatment rates and spillover effects: Does ownership matter?," Regional Science and Urban Economics, Elsevier, vol. 49(C), pages 193-202.
  • Handle: RePEc:eee:regeco:v:49:y:2014:i:c:p:193-202
    DOI: 10.1016/j.regsciurbeco.2014.01.005
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    Cited by:

    1. Badi H. Baltagi & YingDeng & Xiangjun Ma, 2017. "Network Effects on LaborContracts of Internal Migrants in China- A Spatial Autoregressive Model," Center for Policy Research Working Papers 207, Center for Policy Research, Maxwell School, Syracuse University.
    2. repec:wly:hlthec:v:26:y:2017:i::p:63-77 is not listed on IDEAS
    3. Karmann, Alexander & Roesel, Felix, 2016. "Hospital policy and productivity: Evidence from German states," CEPIE Working Papers 07/16, Technische Universität Dresden, Center of Public and International Economics (CEPIE).
    4. Matteo Lippi Bruni & Irene Mammi, 2017. "Spatial effects in hospital expenditures: A district level analysis," Health Economics, John Wiley & Sons, Ltd., vol. 26, pages 63-77, September.

    More about this item

    Keywords

    Spatial lag; Hospital ownership; Spillover effects; Panel data;

    JEL classification:

    • C02 - Mathematical and Quantitative Methods - - General - - - Mathematical Economics

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