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Estimating Heterogeneity in the Benefits of Medical Treatment Intensity

Author

Listed:
  • William N. Evans

    (Department of Economics, University of Notre Dame)

  • Craig Garthwaite

    (Department of Management and Strategy, Kellogg School of Management, Northwestern University)

Abstract

We exploit increases in postpartum length of stay generated by legislative changes in the late 1990s to identify the impact of greater hospital care on the health of newborns. Using all births in California over the 1995–2000 period, two-stage least-square estimates show that increased treatment intensity had a modest impact on readmission probabilities for the average newborn. Allowing the treatment effect to vary by two objective measures of medical need demonstrates that the law had large impacts for those with the greatest likelihood of a readmission. The results suggest that the returns to average and marginal patients vary considerably in this context. © 2012 The President and Fellows of Harvard College and the Massachusetts Institute of Technology.

Suggested Citation

  • William N. Evans & Craig Garthwaite, 2012. "Estimating Heterogeneity in the Benefits of Medical Treatment Intensity," The Review of Economics and Statistics, MIT Press, vol. 94(3), pages 635-649, August.
    • Handle: RePEc:tpr:restat:v:94:y:2012:i:3:p:635-649
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    Cited by:

    1. Seojeong Lee, 2018. "A Consistent Variance Estimator for 2SLS When Instruments Identify Different LATEs," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 36(3), pages 400-410, July.
    2. N. Meltem Daysal & Jonas Cuzulan Hirani, 2021. "Early-life medical care and human capital accumulation," World of Labour, LISER, pages 217-217, September.
    3. Dzhamilya Nigmatulina & Charles Becker, 2016. "Is high-tech care in a middle-income country worth it?," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 24(4), pages 585-620, October.
    4. Sievertsen, Hans Henrik & Wüst, Miriam, 2017. "Discharge on the day of birth, parental response and health and schooling outcomes," Journal of Health Economics, Elsevier, vol. 55(C), pages 121-138.
    5. Daysal, N. Meltem & Trandafir, Mircea & van Ewijk, Reyn, 2016. "Heterogeneous Effects of Medical Interventions on the Health of Low-Risk Newborns," IZA Discussion Papers 9810, IZA Network @ LISER.
    6. Mindy Marks & Kate Choi, 2011. "Baby Boomlets and Baby Health: Hospital Crowdedness, Treatment Intensity, and Infant Health," Working Papers 201440, University of California at Riverside, Department of Economics.
    7. Mindy Marks & Moonkyung Kate Choi, 2019. "Baby Boomlets and Baby Health: Hospital Crowdedness, Hospital Spending, and Infant Health," American Journal of Health Economics, University of Chicago Press, vol. 5(3), pages 376-406, Summer.
    8. Jiajia Chen & Angela K. Dills, 2024. "Does telemedicine save lives? Evidence on the effect of telemedicine parity laws on mortality rates," Southern Economic Journal, John Wiley & Sons, vol. 91(1), pages 12-37, July.
    9. David B. Audretsch, 2015. "Knowledge spillovers and future jobs," World of Labour, LISER, pages 218-218, December.

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    Keywords

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    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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