2014
DOI: 10.3386/w20789
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Sources of Geographic Variation in Health Care: Evidence from Patient Migration

Abstract: We study the drivers of geographic variation in US health care utilization, using an empirical strategy that exploits migration of Medicare patients to separate the role of demand and supply factors. Our approach allows us to account for demand differences driven by both observable and unobservable patient characteristics. Within our sample of over-65 Medicare beneficiaries, we find that 40-50 percent of geographic variation in utilization is attributable to demand-side factors, including health and preference… Show more

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Cited by 109 publications
(195 citation statements)
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“…However, in typical matched employer employee data sets, the number of job movers (2015), Song, Price, Guvenen, and Bloom (2015), and Sorkin (2018), among others. The AKM estimator has been used in a variety of other fields, for example to link banks to firms, teachers to schools or students, and to document differences across areas in patients' health care utilization (e.g., Kramarz, Machin, and Ouazad (2015), Jackson (2013), Finkelstein, Gentzkow, and Williams (2016)). 2 Many structural models proposed in the literature build on Becker (1973).…”
Section: Introductionmentioning
confidence: 99%
“…However, in typical matched employer employee data sets, the number of job movers (2015), Song, Price, Guvenen, and Bloom (2015), and Sorkin (2018), among others. The AKM estimator has been used in a variety of other fields, for example to link banks to firms, teachers to schools or students, and to document differences across areas in patients' health care utilization (e.g., Kramarz, Machin, and Ouazad (2015), Jackson (2013), Finkelstein, Gentzkow, and Williams (2016)). 2 Many structural models proposed in the literature build on Becker (1973).…”
Section: Introductionmentioning
confidence: 99%
“…Finkelstein, Gentzkow, and Williams (2014) address the same question using longitudinal Medicare claims data that allow them to track the same patients as they move through different healthcare markets. They suggest that about half of the observed variation in procedure use is due to supply-side factors, while half is due to patient-level, or demand-side, factors.…”
Section: Introductionmentioning
confidence: 99%
“…Among these factors are the need for medical care (eg, determined by the prevalence or severity of disease or prevalence of comorbid conditions) and the provision of care (6,7). Our findings expand on previous research by describing geographic variation in incremental costs of heart disease and offer initial insights into how differences in the use of services might drive some of this variation.…”
Section: Discussionmentioning
confidence: 99%