We report on research that concerns the efficacy of health care markets and the health of the population. This includes:

The functioning of health insurance markets
The impact of incentive mechanisms for the provision and quality of health care services by physicians and hospitals.
The functioning of markets for pharmaceuticals and medical devices
The interaction between health outcomes and economic behavior, and the effect of policy levers in changing them.

Latest articles

Financial incentives and disability rates

Can financial incentives encourage disability program participants to work? Due to a lack of randomized experiments with well-defined treatment and control groups, there is little evidence on this question. This paper helps to fill the void by exploiting a policy change in the Norwegian disability system that approximates a well-controlled policy experiment. The results show that financial incentives induce many disability recipients to work, enough so that overall program costs fall in spite of the added financial incentives. The analysis points to the possibility that incorporating financial incentives into the U.S. disability system could achieve similar results.

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Impoverished children with access to food stamps become healthier and wealthier adults

Adults who participated in the Food Stamp Program, renamed the Supplemental Nutrition Assistance Program (SNAP) in 2008, as children are healthier and better off financially than poverty-stricken families who did not have access to the program, according to findings in joint work with Douglas Almond and Diane Schanzenbach (this paper and a companion paper Almond, et al. 2011).

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Does the medical residency match lower salaries for residents?

What’s the best way to match new doctors to medical residency programs? The medical residency matching problem is solved by a centralized coordination system that pairs market participants according to their preferences. This paper examines the evidence for the claim that the matching system depresses salaries and finds that an alternative explanation – low salaries represent an implicit tuition fee for medical training – is more promising.

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Healthcare: how competition can improve management quality and save lives

NHS hospitals in England are rarely closed in constituencies where the governing party has a slender majority. This means that for near random reasons, those areas have more competition in healthcare – which has allowed the authors to assess its impact on management quality and clinical performance.

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