essays in public finance and industrial organization a dissertation ...

CHAPTER 1. BANKRUPTCY 60
Table 1.9: Sensitivity Analysis of the Effect on Costs
Nonhomestead
IV Historical IV
High/low
utilization,
baseline IV
High/low
utilization,
historical IV
Hospital Homestead
controls IV
(1) (2) (3) (4) (5) (5)
ln(w S ) 0.380 0.377 0.382 0.375
(0.066) (0.038) (0.039) (0.039)
ln(w S ) X 1(High utilization) 0.512 0.506
(0.044) (0.046)
ln(w S ) X 1(Low utilization) 0.360 0.372
(0.038) (0.037)
Demographic controls Yes Yes Yes Yes Yes Yes
State hospital factors
Nonprofit share -0.123
(0.439)
Forprofit share 0.913
(0.694)
DSH payments per 1,000 0.000
(0.000)
Charity care pool indicator 0.009
(0.214)
FQHC per 100,000 0.043
(0.043)
Dependent variable: ln(out-of-pocket+1)
Relative Risk Score polynomial (4th order) Yes Yes Yes Yes Yes Yes
Instrument
Baseline instrument Yes Yes
Homestead instrument Yes
Non-homestead instrument Yes
Historical instrument Yes Yes
N 3,401 3,401 3,401 2,839 3,401 2,839
Notes: Regressions of out-of-pocket payments on seizable assets in the sample of uninsured households with positive medical
utilization. The baseline instrument is mean log seizable assets by state for a constant, nationally representative sample of households
as though they lived in each state. The homestead, non-homestead, and historical homestead instruments are constructed similarly
using variation in seizable home equity, non-homestead seizable assets, and seizable home equity under inflation-adjusted 1920
homestead exemption laws. Demographic controls are dummies for age group, family structure, race, and education. The Relative Risk
Score is a measure of utilization based on medical diagnoses. All specifications include an indicator for the bottom-coding of seizable
assets. Robust standard errors clustered at the state level in parentheses. Pooled 2000 to 2005 MEPS inflation-adjusted to 2005 using
the CPI-U.