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Physicians and the Production of Health: Returns to Health Care during the Mortality Transition

Author

Listed:
  • Helge Liebert

    (Swiss National Bank, University of Zürich)

  • Beatrice Mäder

    (University of St. Gallen, now at Polynomics)

Abstract

This paper investigates the returns to health care provision during the mortality transition. We construct a new panel data set covering German municipalities from 1928 to 1936. The endogeneity of health care supply is addressed by using the expulsion of Jewish physicians from statutory health insurance as exogenous variation in regional physician supply. Increases in the supply of physicians reduce infant mortality and mortality from common childhood diseases. Using a semiparametric control function approach, we find diminishing marginal returns to health care provision. The results are consistent with historical trends in infant mortality over the twentieth century.

Suggested Citation

  • Helge Liebert & Beatrice Mäder, 2026. "Physicians and the Production of Health: Returns to Health Care during the Mortality Transition," The Review of Economics and Statistics, MIT Press, vol. 108(2), pages 452-469, March.
    • Handle: RePEc:tpr:restat:v:108:y:2026:i:2:p:452-469
    DOI: 10.1162/rest_a_01473
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