Capps, Cory; Dranove, David; Lindrooth, Richard C. - In: Journal of Health Economics 29 (2010) 1, pp. 87-109
We present a new framework for assessing the effects of hospital closures on social welfare and the local economy. While patient welfare necessarily declines when patients lose access to a hospital, closures also tend to reduce costs. We study five hospital closures in two states and find that...