The Pennsylvania State University
Department of Economics
509 Kern Building
Pennsylvania, PA 16802, USA
NBER Working Papers and Publications
|September 2016||Strategic Patient Discharge: The Case of Long-Term Care Hospitals|
with Paul J. Eliason, Ryan C. McDevitt, James W. Roberts: w22598
Medicare's prospective payment system for long-term acute-care hospitals (LTCHs) pro- vides modest reimbursements at the beginning of a patient's stay before jumping discontinuously to a large lump-sum payment after a pre-specified number of days. We show that LTCHs respond to financial incentives by disproportionately discharging patients after they cross the large-payment threshold, resulting in worse outcomes for patients. We find this occurs more often at for-profit facilities, facilities acquired by leading LTCH chains, and facilities co-located with other hospitals. Using a dynamic structural model, we evaluate counterfactual payment policies that would provide substantial savings for Medicare without adversely affecting patients.
|September 2015||What Drives Home Market Advantage?|
with A. Kerem Cosar, Shengyu Li, Felix Tintelnot: w21583
In the automobile industry, as in many tradable goods markets, firms usually earn their highest market share within their domestic market. The goal of this paper is to disentangle the supply- and demand-driven sources of the home market advantage. While trade costs, foreign production costs, and taste heterogeneity all matter for market outcomes, we find that a preference for home brands is the single most important driver of home market advantage - even after controlling for brand histories and dealer networks. Furthermore, we also find that consumers favor domestically producing brands regardless of the historical brand origin.