New working paper: The IO of Selection Markets (joint with @liraneinav and Amy Finkelstein)

Prepared for Volume 4 of The Handbook of Industrial Organization


Ungated version:
In writing the chapter, we tried to put ourselves in the shoes of a 2nd year PhD student who is interested in learning about -- and potentially doing research on -- selection markets.
We provide a common framework, terminology, and notation that can be used to understand many of the recent wave of IO-related papers on selection markets, which has largely focused on insurance and credit markets
Selection markets are, imo, an excellent area for study. They're characterized by high-quality data (eg produce choice and use), strong connections to theory (eg adverse selection, expected utility theory), and significant policy interest. What else could you ask for 😀

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More from @nealemahoney

20 Jul
New publication: Medical Debt in the US, 2009-2020 (joint with @ray_kluender, @francisawong, and @wesyin) in @JAMA_current

Link to the paper:…
The 4 of us have been studying medical debt for 5+ years, including an exciting debt forgiveness experiment with @RIPMedicalDebt. Our initial goal with this paper was to establish a set of facts on medical debt that could inform policy and lay a foundation for future research.
We’re grateful to the editors who pushed us to be ambitious and write a paper that tries to paint a more comprehensive picture of the evolution of medical debt over the last decade. Here are some key takeaways:
Read 11 tweets
9 Jul 20
@zackcooperYale and I wrote a piece on “Economic Principles To Guide The Allocation Of COVID-19 Provider Relief Funds” in @Health_Affairs:


/Begin thread
This spring, Congress set up a $175 billion Provider Relief Fund to provide support for hospitals, physician groups, nursing homes, and other health care providers. To date, HHS has allocated roughly $75 billion of these funds, with additional distributions in progress.
We are deeply grateful for the heroism displayed by health care workers. And we support Congress’s decision to set up the Provider Relief Fund. But we are concerned that funding has not been well-targeted.
Read 14 tweets
24 Mar 20
A (longish) thread on tradeoffs and false tradeoffs during the COVID-19 crisis

With the unrelenting drop in the stock market and off-the-charts UI claims, there are growing concerns that the economic costs of the “cure” are worse than the health costs of the “problem”
Tradeoffs are central to economics. Many of our canonical models are designed to illustrate tradeoffs and we are quick to point out tradeoffs (aka unintended consequences) when they are ignored
Because of tradeoffs, reasonable people with shared goals can disagree simply because they have different views of the underlying elasticity of labor supply, degree of moral hazard, etc that determines optimal policy.
Read 14 tweets
15 Dec 18
Read @nicholas_bagley's piece on the judicial activism behind the latest – but certainly not last -- ACA ruling.

Below is a thread with my views on the politics.

Rs seem to be finally acknowledging that a broad set of the electorate wants affordable health insurance, coverage for pre-existing conditions, low drug prices, etc.
The ACA is the most credible market-based approach to expanding health insurance. The basic structure has its origins in right-wing think tanks and was first implemented by R governer @MittRomney. Obama adopted the approach in a (perhaps naïve) attempt to find common ground w Rs
Read 8 tweets
27 Aug 18
🚨 New Working Paper 🚨

Long-Term Care Hospitals: A Case Study in Waste

Me + Liran Einav + Amy Finkelstein…

This is my first new working paper thread. Thanks to @nomadj1s, @ProfNoto, @SteveCicala, and many others for inspiration.

Near-consensus there is lots of “waste” in US healthcare system, but little agreement on how to reduce this waste.

We identify a specific and substantial source of waste: Long-Term Care Hospitals (LTCHs), a type of post-acute care facility.
Tl;dr: We argue that Medicare could save $4.6 billion per year -- without harming patient outcomes -- by not using LTCHs
Read 18 tweets

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