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Racial Differences in Willingness to Pay for Hospital Access

  • Leguizamon, Susane
  • Christafore, David

We estimate the willingness to pay (WTP) of individuals to have increased spatial access to hospitals using a spatial hedonic price model. Employing a dataset of over 90,000 detailed housing observations, we find that WTP of individuals to live one mile closer to a hospital is positive if the hospital is a designated public hospital, lower for private hospitals and insignificant for non-profit hospitals. Areas comprised of a relatively large population of black residents value spatial access significantly more and, for higher concentrations, exhibit a positive willingness to pay for all hospital types. This is likely due to increased transportation costs of individuals in minority areas.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 55926.

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Date of creation: 13 May 2014
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Handle: RePEc:pra:mprapa:55926
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  9. Ryan, Mandy, 1998. "Valuing psychological factors in the provision of assisted reproductive techniques using the economic instrument of willingness to pay," Journal of Economic Psychology, Elsevier, vol. 19(2), pages 179-204, April.
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