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@techreport{NBERw19333,
 title = "Hospital Choices, Hospital Prices and Financial Incentives to Physicians",
 author = "Ho, Kate and Pakes, Ariel",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "19333",
 year = "2013",
 month = "August",
 doi = {10.3386/w19333},
 URL = "http://www.nber.org/papers/w19333",
 abstract = {We estimate an insurer-specific preference function which rationalizes hospital referrals for privately-insured births in California. The function is additively separable in: a hospital price paid by the insurer, the distance traveled, and plan and severity-specific hospital fixed effects (capturing hospital quality). We use an inequality estimator that allows for errors in price and detailed hospital-severity interactions and obtain markedly different results than those from a logit. The estimates indicate that insurers with more capitated physicians are more responsive to price. Capitated plans send patients further to utilize similar-quality lower-priced hospitals; but the cost-quality trade-off does not vary with capitation rates.},
}