Do Supply-Side Forces Explain Geographic Variation in Health Care Use?

Callison, K., Kaestner, R. and Ward, J. (2020), DO SUPPLY‐SIDE FORCES EXPLAIN GEOGRAPHIC VARIATION IN HEALTH CARE USE?. Economic Inquiry. doi:10.1111/ecin.12926

Posted: 4 Nov 2020

See all articles by Jason Ward

Jason Ward

RAND Corporation

Robert Kaestner

University of Chicago; National Bureau of Economic Research (NBER)

Kevin Callison

Tulane University - Department of Global Health Systems and Development

Date Written: July 24, 2020

Abstract

Regional variation in health care utilization has been well‐documented, yet uncertainty persists about whether this variation is primarily the result of supply‐side or demand‐side forces. We provide new evidence on this issue by examining changes in health care use for the near‐elderly as they transition from being uninsured into Medicare. Results support a causal, supply‐side explanation of regional variation. Estimates indicate that gaining Medicare coverage in above‐median spending regions increases the probability of at least one hospital visit by 40% and the probability of having more than five doctor visits by 26% relative to similar individuals in below‐median spending regions.

Keywords: Geographic Variation, Supply-Side, Dartmouth, Health Care Utilization

JEL Classification: D43, H42, H51, I1, I11, I13

Suggested Citation

Ward, Jason and Kaestner, Robert and Callison, Kevin, Do Supply-Side Forces Explain Geographic Variation in Health Care Use? (July 24, 2020). Callison, K., Kaestner, R. and Ward, J. (2020), DO SUPPLY‐SIDE FORCES EXPLAIN GEOGRAPHIC VARIATION IN HEALTH CARE USE?. Economic Inquiry. doi:10.1111/ecin.12926, Available at SSRN: https://ssrn.com/abstract=3692779

Jason Ward

RAND Corporation ( email )

1776 Main Street
P.O. Box 2138
Santa Monica, CA 90407-2138
United States
3103930411 (Phone)

HOME PAGE: http://www.jasonward.org

Robert Kaestner (Contact Author)

University of Chicago ( email )

1155 East 60th Street
Chicago, IL 60637
United States

National Bureau of Economic Research (NBER)

5 Hanover Square 16th floor
New York, NY 10004
United States

Kevin Callison

Tulane University - Department of Global Health Systems and Development ( email )

New Orleans, LA 70112
United States

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