Quality and Consumer Choice in Healthcare: Evidence from Kidney Transplantation
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David H Howard
Abstract
Most studies of competition in health care focus on prices and costs, but concerns about quality play a central role in policy debates. If demand is inelastic to quality, then competition may reduce patient welfare. This study uses a dataset of patient registrations for kidney transplantation in conjunction with a mixed logit model to gauge consumers’ responsiveness to quality when choosing hospitals. Results indicate that at the hospital level, a one-standard deviation increase in the graft-failure rate is associated with a 6% decline in patient registrations. Privately-insured patients are more responsive to quality than Medicare patients, suggesting that insurers consider quality when contracting with providers.
©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston
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Articles in the same Issue
- Trade and Contract Enforcement
- Public Goods Provision and Well-Being: Empirical Evidence Consistent with the Warm Glow Theory
- Can Supply Restrictions Lower Price? Violence, Drug Dealing and Positional Advantage
- Commercial Development of University Research: The Role of Patents
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- Efficiency and Sectoral Distributional Impacts of Output-Based Emissions Allowances in Canada
- Moral Federalism
- The Role of Wealth Transformations: An Application to Estimating the Effect of Tax Incentives on Saving
- Why Tariffs, Not Subsidies? A Search for Stylized Facts
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- Rational or Confused Polluters? Evidence from Hazardous Waste Compliance
- Indirect Costs and Discounting in Health Care Decision-Making: The Role of Distortionary Taxation
- The Role of Segregation and Pay Structure on the Gender Wage Gap: Evidence from Matched Employer-Employee Data for Spain
- A Dynamic Analysis of Child Labor with a Variable Rate of Discount: Some Policy Implications
- The Determinants of Pharmaceutical Research and Development Investments
- Measurement Error in Schooling: Evidence from Samples of Siblings and Identical Twins
- Tariffs and Firm-Level Heterogeneous Fixed Export Costs
- Estimating Behavioral Response to the AIDS Epidemic
- The Value of Broadband and the Deadweight Loss of Taxing New Technology
- Catholic Schools and Bad Behavior: A Propensity Score Matching Analysis
- The Effect of Switching Private Insurance Plans on Health Care Utilization
- Social Interactions and the Digital Divide: Identification and Policy Implications
- A Distributional Analysis of the Gender Earnings Gap in Urban China
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- Deposit Insurance Altered the Composition of Bank Suspensions during the 1920s: Evidence from the Archives of the Board of Governors
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- Regulatory Incentives and Consolidation: The Case of Commercial Bank Mergers and the Community Reinvestment Act
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- Life-Cycle Consumption and the Age-Adjusted Value of Life
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- Modeling Addictive Consumption as an Infectious Disease
- The Value of Broadband and the Deadweight Loss of Taxing New Technology
- Public Goods Provision and Well-Being: Empirical Evidence Consistent with the Warm Glow Theory
- The Role of Segregation and Pay Structure on the Gender Wage Gap: Evidence from Matched Employer-Employee Data for Spain
- Do Lower Student to Counselor Ratios Reduce School Disciplinary Problems?
- Estimating Behavioral Response to the AIDS Epidemic
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- Disability Insurance Adjudication Criteria and the Incidence of Hard-to-Diagnose Medical Conditions
- Managed Care and Physician Incentives: The Effects of Competition on the Cost and Quality of Care
- Measuring the Effect of Multimarket Contact on Competition: Evidence from Mergers Following Radio Broadcast Ownership Deregulation
- Tariffs and Firm-Level Heterogeneous Fixed Export Costs
- Commercial Development of University Research: The Role of Patents
- The Role of Wealth Transformations: An Application to Estimating the Effect of Tax Incentives on Saving
- Rational or Confused Polluters? Evidence from Hazardous Waste Compliance
- The Effect of Switching Private Insurance Plans on Health Care Utilization
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- New Approaches to Ranking Economics Journals
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- Social Interactions and the Digital Divide: Identification and Policy Implications
- Trade and Contract Enforcement
- Why Tariffs, Not Subsidies? A Search for Stylized Facts
- Moral Federalism
- Tariff Evasion and Customs Corruption: Does Pre-Shipment Inspection Help?
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- Topics Article
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- The Evolution of Open Source Communities
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