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Physicians and the Production of Health

Returns to Health Care during the Mortality Transition

Bibliographic Data

ID19317186
AuthorsHelge Liebert (0000-0003-4311-289X, Swiss National Bank, University of Zürich), Beatrice Mäder (University of St. Gallen, now at Polynomics)
Year2026
Volume108
Issue2
Pages452-469
Publication date2026-02-27
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueThe Review of Economics and Statistics (JOURNAL)
Journal identifiersISSN: 0034-6535 • E-ISSN: 1530-9142
PublisherMIT Press (PUBLISHER • US)
DOI10.1162/rest_a_01473
OpenAlexW4401872718
LanguageEN
References cited35

This paper investigates the returns to health care provision during the mortality transition. We construct a new panel data set covering German municipalities from 1928 to 1936. The endogeneity of health care supply is addressed by using the expulsion of Jewish physicians from statutory health insurance as exogenous variation in regional physician supply. Increases in the supply of physicians reduce infant mortality and mortality from common childhood diseases. Using a semiparametric control function approach, we find diminishing marginal returns to health care provision. The results are consistent with historical trends in infant mortality over the twentieth century

Actuarial science · Business · Demographic economics · Developing country · Econometrics · Economic growth · Economics · Endogeneity · Geography · German · Health care · Health insurance · Infant mortality · Physician supply · Global Health Care Issues · Historical Economic and Social Studies

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