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Regulation, Imperfect Competition, and the U.S. Abortion Market

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  • Andrew Beauchamp

    () (Boston College)

Abstract

The market for abortion in the U.S. has become increasingly concentrated in recent years and many states have tightened abortion regulations aimed at providers. Using unique data on abortion providers I estimate a dynamic model of entry, exit and service provision which captures the effect of regulation on provider behavior. High fixed costs explain the growth of large clinics and estimates show regulation increased entry costs for small providers. A simulation removing all regulations increases entry by smaller providers into incumbent-markets: competition increases as does the number of abortions. Targeted entry subsidies, however, increase access while only slightly increase abortion.

Suggested Citation

  • Andrew Beauchamp, 2012. "Regulation, Imperfect Competition, and the U.S. Abortion Market," Boston College Working Papers in Economics 811, Boston College Department of Economics, revised 31 Oct 2013.
  • Handle: RePEc:boc:bocoec:811
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    References listed on IDEAS

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    1. Kleibergen, Frank & Paap, Richard, 2006. "Generalized reduced rank tests using the singular value decomposition," Journal of Econometrics, Elsevier, vol. 133(1), pages 97-126, July.
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    3. Deborah Haas-Wilson, 1996. "The Impact of State Abortion Restrictions on Minors' Demand for Abortions," Journal of Human Resources, University of Wisconsin Press, vol. 31(1), pages 140-158.
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    6. Blank, Rebecca M. & George, Christine C. & London, Rebecca A., 1996. "State abortion rates the impact of policies, providers, politics, demographics, and economic environment," Journal of Health Economics, Elsevier, vol. 15(5), pages 513-553, October.
    7. Stephen P. Ryan, 2012. "The Costs of Environmental Regulation in a Concentrated Industry," Econometrica, Econometric Society, vol. 80(3), pages 1019-1061, May.
    8. Darius Lakdawalla & Tomas Philipson, 1998. "Nonprofit Production and Competition," NBER Working Papers 6377, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Diego Amador, 2017. "The Consequences of Abortion and Contraception Policies on Young Women’s Reproductive Choices, Schooling and Labor Supply," DOCUMENTOS CEDE 015635, UNIVERSIDAD DE LOS ANDES-CEDE.
    2. Gaynor, Martin & Town, Robert J., 2011. "Competition in Health Care Markets," Handbook of Health Economics, Elsevier.
    3. Patrick Bajari & Chenghuan Sean Chu & Denis Nekipelov & Minjung Park, 2016. "Identification and semiparametric estimation of a finite horizon dynamic discrete choice model with a terminating action," Quantitative Marketing and Economics (QME), Springer, vol. 14(4), pages 271-323, December.

    More about this item

    Keywords

    abortion; regulation;

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms

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