Physician Beliefs and Patient Preferences: A New Look at Regional Variation in Health Care Spending

A-Tier
Journal: American Economic Journal: Economic Policy
Year: 2019
Volume: 11
Issue: 1
Pages: 192-221

Authors (4)

David Cutler (not in RePEc) Jonathan S. Skinner (Dartmouth College) Ariel Dora Stern (not in RePEc) David Wennberg (not in RePEc)

Score contribution per author:

1.005 = (α=2.01 / 4 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

There is considerable controversy about the causes of regional variations in health care expenditures. Using vignettes from patient and physician surveys linked to fee-for-service Medicare expenditures, this study asks whether patient demand-side factors or physician supply-side factors explain these variations. The results indicate that patient demand is relatively unimportant in explaining variations. Physician organizational factors matter, but the most important factor is physician beliefs about treatment. In Medicare, we estimate that 35 percent of spending for end-of-life care and 12 percent of spending for heart attack patients (and for all enrollees) is associated with physician beliefs unsupported by clinical evidence.

Technical Details

RePEc Handle
repec:aea:aejpol:v:11:y:2019:i:1:p:192-221
Journal Field
General
Author Count
4
Added to Database
2026-01-29