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The Economic Consequences of Hospital Admissions
Open accessAbstract
We use an event study approach to examine the economic consequences of hospital admissions for adults in two datasets: survey data from the Health and Retirement Study, and hospitalization data linked to credit reports. For non-elderly adults with health insurance, hospital admissions increase out-of-pocket medical spending, unpaid medical bills, and bankruptcy, and reduce earnings, income, access to credit, and consumer borrowing. The earnings decline is substantial compared to the out-of-pocket spending increase, and is minimally insured prior to age-eligibility for Social Security Retirement Income. Relative to the insured non-elderly, the uninsured non-elderly experience much larger increases in unpaid medical bills and bankruptcy rates following a hospital admission. Hospital admissions trigger fewer than 5 percent of all bankruptcies in our sample. (JEL D14, G22, I11, I13)
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“Empirical researchers commonly adjust for the extrapolation of a linear trend from the pre-treatment periods when there are concerns about violations of the parallel trends assumption, which is valid if the difference in trends is exactly linear (e.g.Bhuller et al., 2013;Dobkin et al., 2018;Goodman-Bacon, 2018, 2021).”
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Metadata
- Authors
- Dobkin, C., Finkelstein, A., Kluender, R., & Notowidigdo, M. J.
- Affiliations
- University of California, Santa Cruz (US)
- Northwestern University (US)
- Venue
- American Economic Review
- Publisher
- American Economic Association
- Published
- 2018-02-01
- Volume
- 108
- Issue
- 2
- Pages
- 308-352
- ISSN
- 0002-8282 (ISSN-L)
- PMC
- PMC5809140
- OpenAlex
- W2412862172
- Cited by
- 555
- References
- 45
- Citations by year
- 2026: 59 · 2025: 101 · 2024: 102 · 2023: 76 · 2022: 73 · 2021: 48 · 2020: 36 · 2019: 37 · 2018: 18
- FWCI
- 52.67
- Type
- journal article
- Language
- en
- Open access
- bronze
- doi.org
- Locations
- American Economic Review (publishedVersion)
- PubMed (publishedVersion)
- Europe PMC (PubMed Central) (acceptedVersion)
- PubMed Central (acceptedVersion)
- RePEc: Research Papers in Economics (submittedVersion)
- Funders
- National Science Foundation (1122374)
- National Institute on Aging (R01AG032449, P01AG005842, R37AG032449)
- Topics
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Healthcare Policy and Management
- Social Sciences › Economics, Econometrics and Finance › Finance › Financial Literacy, Pension, Retirement Analysis
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Economic and Financial Impacts of Cancer
- Keywords
- hospitalization, unpaid medical bills, bankruptcy, earnings, income, access to credit, consumer borrowing, health insurance, uninsured adults, non-elderly adults
About these checks
Registry, retraction, Cites and statistics results are computed, not judged, with one exception: a printed reference that no index lists is read once by a model before it counts as a citation error. Claims are extracted by a model and kept only when their quote appears verbatim in the text; each cited source is then checked, with a model’s help, for whether it says what the claim relies on. Those verdicts can be wrong — read the claim’s quote and the cited source before relying on one.
Statistics and arithmetic are recomputed, not judged.
Confidence bands are shown only for fields calibrated on our annotated test set. None is calibrated yet, so no band is shown.
What counts as a claim ›How we measure confidence ›How we check this ›
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