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| Author: | Gowrisankaran, G. Town, R. J. |
| Title: | Dynamic equilibrium in the hospital industry |
| Journal: | Journal of Economics & Management Strategy
1997 : SPRING, VOL. 6:1, p. 45-74 |
| Index terms: | HEALTH SERVICE INDUSTRIES COMPETITION MARKETS |
| Language: | eng |
| Abstract: | A dynamic model of the hospital industry is presented, in which for-profit and non-profit hospitals coexist and compete and are differentiated by their functions, technologies and taxation rates. In the model patients differ by type of insurance coverage and income, and choose admission to their preferred hospital, while hospitals choose investments, exit, entry, and pricing straegies. The parameters of the model are estimated with aggregate data and a GMM procedure. Model is then used to examine the effects of changes in the Medicare reimbursement system, taxation of nonprofits and universal health-care coverage. |
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