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Hospital Treatment Rates and Spillover Effects: Does Ownership Matter?

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  • Badi H. Baltagi
  • Yin-Fang Yen

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.

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  • Badi H. Baltagi & Yin-Fang Yen, 2014. "Hospital Treatment Rates and Spillover Effects: Does Ownership Matter?," CESifo Working Paper Series 4664, CESifo.
    • Handle: RePEc:ces:ceswps:_4664
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    6. Kuhn, Michael & Minniti, Antonio & Prettner, Klaus & Venturini, Francesco, 2023. "Medical innovation, life expectancy, and economic growth," Department of Economics Working Paper Series 342, WU Vienna University of Economics and Business.
    7. Propper, Carol & Kunz, Johannes & Staub, Kevin & Winkelmann, Rainer, 2020. "Assessing the Quality of Public Services: Does Hospital Competition Crowd Out the For-Profit Quality Gap?," CEPR Discussion Papers 15045, C.E.P.R. Discussion Papers.
    8. Karmann, Alexander & Sugawara, Shinya, 2022. "Comparing the German and Japanese nursing home sectors: Implications of demographic and policy differences," CEPIE Working Papers 02/22, Technische Universität Dresden, Center of Public and International Economics (CEPIE).
    9. Sebastien Bourdin & Sevgi Eda Tuzcu & Esra Satıcı, 2023. "Explaining COVID‐19 vaccine uptake: A spatial sociodemographic study in Turkey," Papers in Regional Science, Wiley Blackwell, vol. 102(2), pages 307-329, April.
    10. Bing Hu & Daiyan Peng & Yuedong Zhang & Jiyu Yu, 2020. "Rural Population Aging and the Hospital Utilization in Cities: The Rise of Medical Tourism in China," IJERPH, MDPI, vol. 17(13), pages 1-17, July.
    11. Francesco Longo & Luigi Siciliani & Hugh Gravelle & Rita Santos, 2017. "Do hospitals respond to rivals' quality and efficiency? A spatial panel econometric analysis," Health Economics, John Wiley & Sons, Ltd., vol. 26(S2), pages 38-62, September.
    12. Whitney Afonso, 2016. "The Equity of Local Sales Tax Distributions in Urban, Suburban, Rural, and Tourism Rich Counties in North Carolina," Public Finance Review, , vol. 44(6), pages 691-721, November.
    13. Cavalieri, Marina & Di Caro, Paolo & Guccio, Calogero & Lisi, Domenico, 2020. "Does neighbours' grass matter? Testing spatial dependent heterogeneity in technical efficiency of Italian hospitals," Social Science & Medicine, Elsevier, vol. 265(C).
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    More about this item

    Keywords

    spatial lag; hospital ownership; spillover effects; panel data;
    All these keywords.

    JEL classification:

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

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