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Long-term returns to local health-care spending

Author

Listed:
  • Jakub Červený

    (Ministry of Health of the Slovak Republic
    National Health Information Center
    Slovak Academy of Sciences)

  • Jan C. van Ours

    (Erasmus University
    Tinbergen Institute
    CEPR)

Abstract

This paper investigates the effects of health-care spending on mortality rates of patients who experienced a heart attack. We relate in-hospital deaths to in-hospital spending and post-discharge deaths to post-discharge health-care spending. In our analysis, we use detailed administrative data on individual personal characteristics including comorbidities, information about the type of medical treatment and information about health-care expenses at the regional level. To account for potential selectivity in the region of health-care treatment we compare local patients with visitors and stayers with recent movers from a different region. We find that in regions with higher health-care spending mortality after heart attacks is substantially lower. From this we conclude that there are long-term returns to local health-care spending.

Suggested Citation

  • Jakub Červený & Jan C. van Ours, 2025. "Long-term returns to local health-care spending," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 26(2), pages 153-182, March.
    • Handle: RePEc:spr:eujhec:v:26:y:2025:i:2:d:10.1007_s10198-024-01695-x
    DOI: 10.1007/s10198-024-01695-x
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    Keywords

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    JEL classification:

    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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