1 option
Measuring Quality Effects in Equilibrium / Seth Richards-Shubik, Mark S. Roberts, Julie M. Donohue.
- Format:
- Book
- Author/Creator:
- Richards-Shubik, Seth.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w28817.
- NBER working paper series no. w28817
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2021.
- Summary:
- Unlike demand studies in other industries, models of provider demand in health care often must omit a price or any other factor that equilibrates the market. Estimates of the consumer response to quality may consequently be attenuated, if the limited capacity of individual providers prevents some consumers from obtaining higher quality. We propose a tractable method to address this problem by adding a congestion effect to standard discrete-choice models. We show analytically how this improves forecasts of the consumer response to quality. We then apply this method to the market for heart surgery, and find that the attenuation bias in estimated quality effects can be important empirically.
- Notes:
- Print version record
- May 2021.
The Penn Libraries is committed to describing library materials using current, accurate, and responsible language. If you discover outdated or inaccurate language, please fill out this feedback form to report it and suggest alternative language.