SMU SOE Seminar Series (October 11, 2024): Radiating Influence? Spillover Effects among Physicians

TOPIC:

ABSTRACT

We study spillovers in healthcare by exploring how physicians' treatment choices are influenced by their peers using Swedish clinical quality data on the use of radiation in diagnostic angiography procedures. To account for endogenous peer formation, we instrument co-workers' weekly radiation output using the plausibly exogenous arrival of emergency cases they handle. Our estimates suggest that focal cardiologists increase their radiation output by 0.7 standard deviations for each standard deviation increase in their peers' output, with stronger effects for younger doctors and male cardiologists. We document that these peer effects enhance the quality of care by improving use shares of appropriate radiation dosages and lower risk-adjusted patient mortality.

Click here to view the CV.