QUANTIFYING THE IMPACTS OF LIMITED SUPPLY: THE CASE OF NURSING HOMES

• 成果类型: Article
• 署名作者: Ching, Andrew T.; Hayashi, Fumiko; Wang, Hui
• 署名单位: University of Toronto; Federal Reserve System - USA; Federal Reserve Bank - Kansas City; Peking University
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/iere.12138
• 发表日期: 2015
• 页码: 1291-1322
• 关键词: quality-of-care; medicaid reimbursement; excess-demand; CHOICE; COMPETITION; models; price; cost

摘要

This article develops a new estimation method that accounts for excess demand and the unobserved component of product quality. We apply our method to study the Wisconsin nursing home market in 1999 and find that nearly 20% of elderly qualified for Medicaid were rationed out. However, our counterfactual experiment shows that the net welfare gain of fulfilling all nursing home demands may be small, because the welfare gain could be largely offset by the increase in Medicaid expenditures. We also find that a 1% increase in quality would crowd out 3.2% Medicaid patients in binding nursing homes.