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Title: Market Size and Trade in Medical Services

Citation Type: Miscellaneous

Publication Year: 2023

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Abstract: We measure the importance of increasing returns to scale and trade in medical services. Using Medicare claims data, we document that "imported" medical care-services produced by a medical provider in a different region-constitute about one-fifth of US healthcare consumption. Larger regions specialize in producing less common procedures, which are traded more. These patterns reflect economies of scale: larger regions produce higher-quality services because they serve more patients. Because of increasing returns and trade costs, policies to improve access to care face a proximity-concentration tradeoff. Production subsidies and travel subsidies can impose contrasting spillovers on neighboring regions.

Url: http://www.jdingel.com/research/DGLM_MSTMS.pdf

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Authors: Dingel, Jonathan I.; Gottlieb, Joshua D.; Lozinski, Maya; Mourot, Pauline

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Data Collections: IPUMS USA

Topics: Health, Housing and Segregation

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