IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/55926.html
   My bibliography  Save this paper

Racial Differences in Willingness to Pay for Hospital Access

Author

Listed:
  • Leguizamon, Susane
  • Christafore, David

Abstract

We estimate the willingness to pay (WTP) of individuals to have increased spatial access to hospitals using a spatial hedonic price model. Employing a dataset of over 90,000 detailed housing observations, we find that WTP of individuals to live one mile closer to a hospital is positive if the hospital is a designated public hospital, lower for private hospitals and insignificant for non-profit hospitals. Areas comprised of a relatively large population of black residents value spatial access significantly more and, for higher concentrations, exhibit a positive willingness to pay for all hospital types. This is likely due to increased transportation costs of individuals in minority areas.

Suggested Citation

  • Leguizamon, Susane & Christafore, David, 2014. "Racial Differences in Willingness to Pay for Hospital Access," MPRA Paper 55926, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:55926
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/55926/1/MPRA_paper_55926.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Phil Shackley & Cam Donaldson, 2000. "Willingness to pay for publicly-financed health care: how should we use the numbers?," Applied Economics, Taylor & Francis Journals, vol. 32(15), pages 2015-2021.
    2. Bernard van den Berg & Han Bleichrodt & Louis Eeckhoudt, 2005. "The economic value of informal care: a study of informal caregivers' and patients' willingness to pay and willingness to accept for informal care," Health Economics, John Wiley & Sons, Ltd., vol. 14(4), pages 363-376, April.
    3. David Brasington & Donald R. Haurin, 2006. "Educational Outcomes and House Values: A Test of the value added Approach," Journal of Regional Science, Wiley Blackwell, vol. 46(2), pages 245-268, May.
    4. Stewart, Jennifer M. & O'Shea, Eamon & Donaldson, Cam & Shackley, Phil, 2002. "Do ordering effects matter in willingness-to-pay studies of health care?," Journal of Health Economics, Elsevier, vol. 21(4), pages 585-599, July.
    5. Donaldson, Cam, 1990. "Willingness to pay for publicly-provided goods : A Possible Measure of Benefit?," Journal of Health Economics, Elsevier, vol. 9(1), pages 103-118, June.
    6. Mandy Ryan & Verity Watson, 2009. "Comparing welfare estimates from payment card contingent valuation and discrete choice experiments," Health Economics, John Wiley & Sons, Ltd., vol. 18(4), pages 389-401, April.
    7. Andrew M. Jones (ed.), 2006. "The Elgar Companion to Health Economics," Books, Edward Elgar Publishing, number 3572.
    8. Pearson, L. J. & Tisdell, C. & Lisle, A. T., 2002. "The Impact of Noosa National Park on Surrounding Property Values: An Application of the Hedonic Price Method," Economic Analysis and Policy, Elsevier, vol. 32(2), pages 155-171, June Spec.
    9. Capps, Cory & Dranove, David & Lindrooth, Richard C., 2010. "Hospital closure and economic efficiency," Journal of Health Economics, Elsevier, vol. 29(1), pages 87-109, January.
    10. R. K. Blamey & J. W. Bennett & M. D. Morrison, 1999. "Yea-Saying in Contingent Valuation Surveys," Land Economics, University of Wisconsin Press, vol. 75(1), pages 126-141.
    11. Ryan, Mandy, 1998. "Valuing psychological factors in the provision of assisted reproductive techniques using the economic instrument of willingness to pay," Journal of Economic Psychology, Elsevier, vol. 19(2), pages 179-204, April.
    12. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
    13. Cho, Seong-Hoon & Bowker, James Michael & Park, William M., 2006. "Measuring the Contribution of Water and Green Space Amenities to Housing Values: An Application and Comparison of Spatially Weighted Hedonic Models," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 31(3), pages 1-23, December.
    14. David M. Brasington, 2004. "House Prices and the Structure of Local Government: An Application of Spatial Statistics," The Journal of Real Estate Finance and Economics, Springer, vol. 29(2), pages 211-231, September.
    15. Paul E. McNamara, 1999. "Welfare Effects of Rural Hospitial Closures: A Nested Logit Analysis of the Demand for Rural Hospital Services," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(3), pages 686-691.
    16. Brent L. Mahan & BStephen Polasky & Richard M. Adams, 2000. "Valuing Urban Wetlands: A Property Price Approach," Land Economics, University of Wisconsin Press, vol. 76(1), pages 100-113.
    17. Johannesson, Magnus & Johansson, Per-Olov, 1997. "Quality of life and the WTP for an increased life expectancy at an advanced age," Journal of Public Economics, Elsevier, vol. 65(2), pages 219-228, August.
    18. Panelli, Ruth & Gallagher, Lou & Kearns, Robin, 2006. "Access to rural health services: Research as community action and policy critique," Social Science & Medicine, Elsevier, vol. 62(5), pages 1103-1114, March.
    19. Won Kim, Chong & Phipps, Tim T. & Anselin, Luc, 2003. "Measuring the benefits of air quality improvement: a spatial hedonic approach," Journal of Environmental Economics and Management, Elsevier, vol. 45(1), pages 24-39, January.
    20. Buchmueller, Thomas C. & Jacobson, Mireille & Wold, Cheryl, 2006. "How far to the hospital?: The effect of hospital closures on access to care," Journal of Health Economics, Elsevier, vol. 25(4), pages 740-761, July.
    21. Sedgley, Norman H. & Williams, Nancy A. & Derrick, Frederick W., 2008. "The effect of educational test scores on house prices in a model with spatial dependence," Journal of Housing Economics, Elsevier, vol. 17(2), pages 191-200, June.
    22. Paul Thorsnes, 2002. "The Value of a Suburban Forest Preserve: Estimates from Sales of Vacant Residential Building Lots," Land Economics, University of Wisconsin Press, vol. 78(3), pages 426-441.
    23. Liu, Liyan & Hader, Joanne & Brossart, Bonnie & White, Robin & Lewis, Steven, 2001. "Impact of rural hospital closures in Saskatchewan, Canada," Social Science & Medicine, Elsevier, vol. 52(12), pages 1793-1804, June.
    24. Nick Hanley & Mandy Ryan & Robert Wright, 2003. "Estimating the monetary value of health care: lessons from environmental economics," Health Economics, John Wiley & Sons, Ltd., vol. 12(1), pages 3-16, January.
    25. Brasington, David M. & Hite, Diane, 2005. "Demand for environmental quality: a spatial hedonic analysis," Regional Science and Urban Economics, Elsevier, vol. 35(1), pages 57-82, January.
    26. Palmquist, Raymond B, 1984. "Estimating the Demand for the Characteristics of Housing," The Review of Economics and Statistics, MIT Press, vol. 66(3), pages 394-404, August.
    27. Shackley, Phil & Donaldson, Cam, 2002. "Should we use willingness to pay to elicit community preferences for health care?: New evidence from using a 'marginal' approach," Journal of Health Economics, Elsevier, vol. 21(6), pages 971-991, November.
    28. Mansfield, Carol & Pattanayak, Subhrendu K. & McDow, William & McDonald, Robert & Halpin, Patrick, 2005. "Shades of Green: Measuring the value of urban forests in the housing market," Journal of Forest Economics, Elsevier, vol. 11(3), pages 177-199, December.
    29. Ryan, Mandy & Ratcliffe, Julie & Tucker, Janet, 1997. "Using willingness to pay to value alternative models of antenatal care," Social Science & Medicine, Elsevier, vol. 44(3), pages 371-380, February.
    30. Eamon O’Shea & Jennifer Stewart & Cam Donaldson & Phil Shackley, 2001. "Eliciting Preferences for Resource Allocation in Health Care," The Economic and Social Review, Economic and Social Studies, vol. 32(3), pages 217-238.
    31. Stephen Gibbons & Stephen Machin, 2008. "Valuing school quality, better transport, and lower crime: evidence from house prices," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 24(1), pages 99-119, spring.
    32. Peter A. Diamond & Jerry A. Hausman, 1994. "Contingent Valuation: Is Some Number Better than No Number?," Journal of Economic Perspectives, American Economic Association, vol. 8(4), pages 45-64, Fall.
    33. Klose, Thomas, 1999. "The contingent valuation method in health care," Health Policy, Elsevier, vol. 47(2), pages 97-123, May.
    34. Holly J. Michael & Kevin J. Boyle & Roy Bouchard, 2000. "Does the Measurement of Environmental Quality Affect Implicit Prices Estimated from Hedonic Models?," Land Economics, University of Wisconsin Press, vol. 76(2), pages 283-298.
    35. Bobinac, Ana & van Exel, N. Job A. & Rutten, Frans F.H. & Brouwer, Werner B.F., 2012. "GET MORE, PAY MORE? An elaborate test of construct validity of willingness to pay per QALY estimates obtained through contingent valuation," Journal of Health Economics, Elsevier, vol. 31(1), pages 158-168.
    36. Anderson, Soren T. & West, Sarah E., 2006. "Open space, residential property values, and spatial context," Regional Science and Urban Economics, Elsevier, vol. 36(6), pages 773-789, November.
    37. Olsen, Jan Abel & Donaldson, Cam, 1998. "Helicopters, hearts and hips: Using willingness to pay to set priorities for public sector health care programmes," Social Science & Medicine, Elsevier, vol. 46(1), pages 1-12, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. David Christafore & Susane Leguizamon, 2015. "Willingness to Pay for Hospital Access in Areas with High Concentrations of Blacks," The Review of Regional Studies, Southern Regional Science Association, vol. 45(1), pages 87-104, Spring.
    2. Wei Li & Jean-Daniel Saphores, 2012. "A Spatial Hedonic Analysis of the Value of Urban Land Cover in the Multifamily Housing Market in Los Angeles, CA," Urban Studies, Urban Studies Journal Limited, vol. 49(12), pages 2597-2615, September.
    3. Waltert, Fabian & Schläpfer, Felix, 2010. "Landscape amenities and local development: A review of migration, regional economic and hedonic pricing studies," Ecological Economics, Elsevier, vol. 70(2), pages 141-152, December.
    4. Nguyen-Hoang, Phuong & Yinger, John, 2011. "The capitalization of school quality into house values: A review," Journal of Housing Economics, Elsevier, vol. 20(1), pages 30-48, March.
    5. Christafore, David & Leguizamon, Susane, 2012. "The influence of gay and lesbian coupled households on house prices in conservative and liberal neighborhoods," Journal of Urban Economics, Elsevier, vol. 71(2), pages 258-267.
    6. Xia Feng & Brad R. Humphreys, 2008. "Assessing the Economic Impact of Sports Facilities on Residential Property Values: A Spatial Hedonic Approach," Working Papers 0812, International Association of Sports Economists;North American Association of Sports Economists.
    7. Fernandez, Mario Andres & Bucaram, Santiago, 2019. "The changing face of environmental amenities: Heterogeneity across housing submarkets and time," Land Use Policy, Elsevier, vol. 83(C), pages 449-460.
    8. Yadavalli, Anita P. & Florax, Raymond J.G.M., 2013. "The Effect of School Quality on House Prices: A Meta-Regression Analysis," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 151291, Agricultural and Applied Economics Association.
    9. Callan, Aoife & O'Shea, Eamon, 2015. "Willingness to pay for telecare programmes to support independent living: Results from a contingent valuation study," Social Science & Medicine, Elsevier, vol. 124(C), pages 94-102.
    10. John Yinger, 2009. "Hedonic Markets and Explicit Demands: Bid-Function Envelopes for Public Services, Neighborhood Amenities, and Commuting Costs," Center for Policy Research Working Papers 114, Center for Policy Research, Maxwell School, Syracuse University.
    11. Susane Leguizamon, 2010. "The Influence of Reference Group House Size on House Price," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 38(3), pages 507-527, September.
    12. Hu, Ziwei & Swallow, Brent & Qiu, Feng, 2021. "Measuring the Amenity Value of Urban Open Space Using a Spatial Hedonic Approach: The Case of Edmonton, Canada," 2021 Conference, August 17-31, 2021, Virtual 315287, International Association of Agricultural Economists.
    13. Ziwei Hu & Hotaka Kobori & Brent Swallow & Feng Qiu, 2022. "Willingness to pay for multiple dimensions of green open space: Applying a spatial hedonic approach," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 70(3), pages 179-201, September.
    14. Seong-Hoon Cho & Christopher D. Clark & William M. Park & Seung Gyu Kim, 2009. "Spatial and Temporal Variation in the Housing Market Values of Lot Size and Open Space," Land Economics, University of Wisconsin Press, vol. 85(1), pages 51-73.
    15. Joseph Hiebert & Karen Allen, 2019. "Valuing Environmental Amenities across Space: A Geographically Weighted Regression of Housing Preferences in Greenville County, SC," Land, MDPI, vol. 8(10), pages 1-16, October.
    16. Anping Chen & Marlon Boarnet & Mark Partridge & Wenjie Wu & Guanpeng Dong, 2014. "Valuing The “Green” Amenities In A Spatial Context," Journal of Regional Science, Wiley Blackwell, vol. 54(4), pages 569-585, September.
    17. Ryan, Mandy & Scott, David A. & Donaldson, Cam, 2004. "Valuing health care using willingness to pay: a comparison of the payment card and dichotomous choice methods," Journal of Health Economics, Elsevier, vol. 23(2), pages 237-258, March.
    18. Jeffrey P. Cohen & Robert G. Cromley & Kevin T. Banach, 2015. "Are Homes Near Water Bodies and Wetlands Worth More or Less? An Analysis of Housing Prices in One Connecticut Town," Growth and Change, Wiley Blackwell, vol. 46(1), pages 114-132, March.
    19. David Brasington & Don Haurin, 2005. "The Demand for Educational Quality: Comparing Estimates from a Median Voter Model with those from an Almost Ideal Demand System," Departmental Working Papers 2005-16, Department of Economics, Louisiana State University.
    20. Stadelmann, David, 2010. "Which factors capitalize into house prices? A Bayesian averaging approach," Journal of Housing Economics, Elsevier, vol. 19(3), pages 180-204, September.

    More about this item

    Keywords

    Health Care; Housing Markets; Cost-Benefit Analysis;
    All these keywords.

    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • R53 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Public Facility Location Analysis; Public Investment and Capital Stock

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:55926. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.