In the domain of technology startups, biotechnology has often been considered as specific. Their unique technology content, the type of founders and managers they have, the amount of venture capital they raise, the time it takes them to reach an exit as well as the technology clusters they belong to are seen as such unique features. Based on extensive research from new databases, the author claims that the biotechnology startups are not as different as it might have been claimed: the amount of venture capital raised, the time to exit, their geography are indeed similar and even their equity structure to founders and managers have similarities. The differences still exist, for example the experience of the founders, the revenue and profit level at exit.
Ambulances are a vital part of emergency medical services. However, they come in single, homogeneous, high intervention form, which is at times unnecessary, resulting in excessive costs for patients and insurers. In this paper, we ask whether UberX’s entry into a city caused substitution away from traditional ambulances for low risk patients, reducing overall volume.
Using a city-panel over-time and leveraging that UberX enter markets sporadically over multiple years, we find that UberX entry reduced the per capita ambulance volume by at least 7%. Our result is robust to numerous specifications.
We find that where a doctor received his/her initial training matters in terms of predicting how likely they are to prescribe opioids: physicians trained at the lowest ranked US medical schools prescribe nearly three times as many opioids per year as physicians trained at the top medical school. This striking inverse relationship reflects two factors: (1) physicians from lower ranked medical schools are more likely to write any opioid prescriptions; and (2) conditional on being an opioid prescriber, physicians for lower ranked medical schools write more opioid prescriptions on average. This prescribing gradient is particularly pronounced among GPs. Our results demonstrate that if all GPs prescribed like those from the top ranked school, we would
have had 56.5% fewer opioid prescriptions and 8.5% fewer deaths over the period 2006 to 2014.
Full text: http://www.nber.org/papers/w23645.pdf
Concentrating on the Fall of the Labor Share by David H. Autor, David Dorn, Lawrence F. Katz, Christina Patterson, John Van Reenen :: SSRNFebruary 7, 2017
The recent fall of labor’s share of GDP in numerous countries is well-documented, but its causes are poorly understood. We sketch a “superstar firm” model where industries are increasingly characterized by “winner take most” competition, leading a small number of highly profitable (and low labor share) firms to command growing market share. Building on Autor et al. (2017), we evaluate and confirm two core claims of the superstar firm hypothesis: the concentration of sales among firms within industries has risen across much of the private sector; and industries with larger increases in concentration exhibit a larger decline in labor’s share.
Oligopolistic Competition for the Provision of Hospital Care by Laura Levaggi, Rosella Levaggi :: SSRNJanuary 23, 2017
The process of privatisation of health care has followed different patterns and some health care systems have preferred to create a mixed market where public organisations compete alongside private ones. The evidence on their performance is mixed. In this article we argue that public hospitals have different objectives than private ones, faces different constraints and are perceived differently from the patients. For this reason we model the market for hospital care as Salop circle with a centre where the public hospital is at the centre and private providers are along the circle. We show that, depending on the difference in the productivity advantage, mixed market may outperform both the benchmark (one public hospital at the centre) and private competition (N private providers competing along the circle).
Our model offers several policy implications: the process of privatisation may lead to cost reduction in the provision of health care, but it reduces the altruistic motivation of the staff. In health care this may lead to increased cost as concerns quality. The second important consideration relates to the perception that patients have of hospital pursuing different objectives, another aspect that should be taken into account in privatisation. Finally we show that in a mixed market it may be optimal to allow the public hospital to interpret its budget as soft; this mechanism may in fact allow to reduce the total health are bill.
Thinking of Incentivizing Care? The Effect of Demand Subsidies on Informal Caregiving and Intergenerational Transfers by Joan Costa-Font, Sergi Jimenez-Martin, Cristina Vilaplana :: SSRNDecember 5, 2016
We still know little about what motivates the informal care arrangements provided in old age. The introduction of demand-side subsidies such as unconditional caregiving allowances (cash benefits designed either to incentivize the provision of informal care, or compensate for the loss of employment of informal caregivers) provide us with an opportunity to gain a further understanding of the matter. In this paper we exploit a quasi-natural experiment to identify the effects of the inception in 2007 (and its reduction in 2012) of a universal caregiving allowance on both the supply of informal care, and subsequent intergenerational transfer flows. We find evidence of a 30% rise in informal caregiving after the subsidy, and an increase (reduction) in downstream (upstream) intergenerational transfers of 29% (and 15%). Estimates were heterogeneous by income and wealth quantiles. Consistently, the effects were attenuated by a subsequent policy intervention; the reduction of the subsidy amidst austerity cuts in 2012.
Retail clinics have become a popular choice for routine aliments and quick primary care treatment, but they may not be reducing visits to emergency departments, according to a new analysis.
There’s little question Americans have taken to the concept of retail medicine as CVS Health CVS +1.21%, Walgreens, Walmart and grocery store chains like Kroger have opened thousands of clinics as a primary care option. CVS now has more than 1,100 MinuteClinics in 33 states . But RAND Corp. researchers looking at the early days of retail clinic growth indicates they might not be changing patient behaviors when it comes to using more expensive hospital emergency rooms.