Input Constraints and the Efficiency of Entry Lessons from Cardiac Surgery

• 成果类型: Article
• 署名作者: Cutler, David M.; Huckman, Robert S.; Kolstad, Jonathan T.
• 署名单位: Harvard University; National Bureau of Economic Research; Harvard University; University of Pennsylvania
• 刊物名称: AMERICAN ECONOMIC JOURNAL-ECONOMIC POLICY
• ISSN/ISSBN: 1945-7731
• DOI: 10.1257/pol.2.1.51
• 发表日期: 2010
• 页码: 51-76
• 关键词: of-need regulations; health-care; monopolistic competition; QUALITY; volume; certificate; CHOICE; insurance; mortality; IMPACT

摘要

Prior studies suggest that with elastically supplied inputs free entry may lead to an inefficiently high number of firms in equilibrium Under input scarcity however, the welfare loss from free entry is reduced Further, free entry may increase use of high-quality inputs, as oligopolistic firms underuse these inputs when entry is constrained We assess these predictions by examining how the 1996 repeal of certificate-of-need (CON) legislation in Pennsylvania affected the market for cardiac surgery in the state We show that entry led to a redistribution of surgeries to higher quality surgeons, and that this entry was approximately welfare neutral