Health Spending Slowed Down in Spite of the Crisis

20 Pages Posted: 29 Jun 2016 Last revised: 2 Oct 2019

See all articles by Marco Di Maggio

Marco Di Maggio

Harvard Business School; National Bureau of Economic Research (NBER)

Andrew Haughwout

Federal Reserve Bank of New York

Amir Kermani

University of California, Berkeley; National Bureau of Economic Research (NBER)

Matthew Mazewski

Columbia University

Maxim Pinkovskiy

Federal Reserve Bank of New York

Date Written: 2016-06-01

Abstract

We exploit plausibly exogenous regulatory changes in the mortgage lending market to estimate causal effects of the financial boom and bust on personal income in the health sector. We find that counties that were exogenously more exposed to the crisis because of the regulatory reforms experienced a greater rise in the size of the health sector over the course of the boom and the bust relative to control counties, with the differential persisting through the recovery. We provide suggestive evidence that increased mortality during the bust and greater capital investment during the boom contributed to this persistence of health spending.

Keywords: health spending, Great Recession, anti-predatory lending

JEL Classification: E3, G28, I11

Suggested Citation

Di Maggio, Marco and Haughwout, Andrew F. and Kermani, Amir and Mazewski, Matthew and Pinkovskiy, Maxim, Health Spending Slowed Down in Spite of the Crisis (2016-06-01). FRB of NY Staff Report No. 781. Available at SSRN: https://ssrn.com/abstract=2801987

Marco Di Maggio (Contact Author)

Harvard Business School ( email )

Soldiers Field
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HOME PAGE: http://https://www.hbs.edu/faculty/Pages/profile.aspx?facId=697248

National Bureau of Economic Research (NBER) ( email )

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Andrew F. Haughwout

Federal Reserve Bank of New York ( email )

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212-720-1844 (Fax)

Amir Kermani

University of California, Berkeley ( email )

2220 Piedmont Ave
Berkeley, CA 94720
United States

HOME PAGE: http://faculty.haas.berkeley.edu/amir/research/research.html

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Matthew Mazewski

Columbia University

3022 Broadway
New York, NY 10027
United States

Maxim Pinkovskiy

Federal Reserve Bank of New York ( email )

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