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

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  • Helge Liebert
  • Beatrice Mäder

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 20th century.

Suggested Citation

  • Helge Liebert & Beatrice Mäder, 2022. "Physicians and the Production of Health: Returns to Health Care During the Mortality Transition," CESifo Working Paper Series 9699, CESifo.
    • Handle: RePEc:ces:ceswps:_9699
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    References listed on IDEAS

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    1. Cameron,A. Colin & Trivedi,Pravin K., 2013. "Regression Analysis of Count Data," Cambridge Books, Cambridge University Press, number 9781107667273, January.
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    More about this item

    Keywords

    infant mortality; physicians; health care supply; mortality transition; semiparametric IV;
    All these keywords.

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • N34 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Europe: 1913-

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