Do Spa Visits Improve Health: Evidence from German Micro Data

20 Pages Posted: 11 Sep 2004

See all articles by Jonathan Klick

Jonathan Klick

University of Pennsylvania Law School; Erasmus School of Law; PERC - Property and Environment Research Center

Thomas Stratmann

George Mason University - Buchanan Center Political Economy; George Mason University - Mercatus Center; CESifo (Center for Economic Studies and Ifo Institute)

Date Written: April 2007

Abstract

The health benefits of spas have been hypothesized for centuries. If this hypothesis is correct, spa therapy offers a low cost alternative to more expensive and potentially more invasive medical treatments for ailments such as back pain and arthritis. We use individual-level panel data to isolate the effect of spa therapy on missed work days and hospital visits in Germany. Simple correlations suggest a self-selection bias - spa visits are associated with increased absenteeism and hospitalization. However, when we exploit the longitudinal nature of the data, we find that spa therapy leads to a statistically significant reduction in both absenteeism and hospitalization, though it is not clear if these health benefits justify the cost of spa therapy.

Keywords: alternative medicine, insurance, hospitalization, medical expenditures

JEL Classification: H51, I12, I18, J32, K32

Suggested Citation

Klick, Jonathan and Stratmann, Thomas, Do Spa Visits Improve Health: Evidence from German Micro Data (April 2007). FSU College of Law, Law and Economics Paper No. 05-13, FSU College of Law, Public Law Research Paper No. 124, Available at SSRN: https://ssrn.com/abstract=589341 or http://dx.doi.org/10.2139/ssrn.589341

Jonathan Klick (Contact Author)

University of Pennsylvania Law School ( email )

3501 Sansom Street
Philadelphia, PA 19104
United States
2157463455 (Phone)

Erasmus School of Law ( email )

3000 DR Rotterdam
Netherlands

PERC - Property and Environment Research Center

2048 Analysis Drive
Suite A
Bozeman, MT 59718
United States

Thomas Stratmann

George Mason University - Buchanan Center Political Economy ( email )

4400 University Drive
Fairfax, VA 22030
United States
703-993-2330 (Phone)

George Mason University - Mercatus Center ( email )

3434 Washington Blvd., 4th Floor
Arlington, VA 22201
United States

HOME PAGE: http://www.mercatus.org/scholars/thomas-stratmann

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
229
Abstract Views
3,655
rank
146,239
PlumX Metrics