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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
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