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Racial Differences in Willingness to Pay for Hospital Access

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  • 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
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    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

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