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'Placebo Tests' for the Impacts of Air Pollution on Health: The Challenge of Limited Healthcare Infrastructure

Author

Listed:
  • Guidetti, Bruna

    (University of Michigan)

  • Pereda, Paula

    (University of Sao Paulo)

  • Severnini, Edson R.

    (Carnegie Mellon University)

Abstract

When examining the impacts of exposure to air pollution on health outcomes, researchers usually carry out "placebo tests" to provide evidence in support of their identification assumption. In general, this exercise targets health conditions seemingly unrelated to air pollution. In this study, we argue that one should proceed with caution when running such falsification tests. If healthcare infrastructure is limited, when we observe health shocks such as those driven by air pollution, the infrastructure needs to be adjusted to meet the increased demand by canceling or rescheduling elective and non-urgent procedures, for example. As a result, even health conditions seemingly unrelated to air pollution may be indirectly affected by pollution.

Suggested Citation

  • Guidetti, Bruna & Pereda, Paula & Severnini, Edson R., 2021. "'Placebo Tests' for the Impacts of Air Pollution on Health: The Challenge of Limited Healthcare Infrastructure," IZA Discussion Papers 14080, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp14080
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    More about this item

    Keywords

    health outcomes; healthcare infrastructure; air pollution; placebo tests; hospitalization for respiratory diseases and other causes;
    All these keywords.

    JEL classification:

    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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