In simple terms, endogeneity is the violation of an assumption in regression analysis that, if not properly addressed, may undermine the reliability of standard empirical analyses and of the inferences based upon them. Endogeneity arises when one or more of the explanatory variables included as...

Why do firms take non-profit status? One of the most popular theories in the law and economics literature is that non-profit status is a signal of quality (Hansmann 1980; Glaeser & Shleifer 2001). This paper offers a simple, empirical test of this theory. If non-profit status signals quality, surely...

Theoretical models that were developed in the 1970's predict large differences in behavior between for-profit and nonprofit hospitals, while recent empirical studies have consistently failed to detect these differences. This paper attempts to solve this apparent contradiction by suggesting that...

Cross-subsidies are often considered the principal mechanism through which hospitals provide unprofitable care. Yet, hospitals' reliance on and extent of cross-subsidization are difficult to establish. We exploit entry by cardiac specialty hospitals as an exogenous shock to incumbent hospitals'...

The patient-centered medical home (PCMH) is a model for restructuring primary care with a focus on improved access to care and clinical excellence. However, to date, the evidence on its effect on healthcare utilization and expenditures has been quite mixed. One possible reason for this may lie...

The patient-centered medical home (PCMH) is a model for restructuring primary care with a focus on improved access to care and clinical excellence. However, to date, the evidence on its effect on healthcare utilization and expenditures has been quite mixed. One possible reason for this may lie...

Cross-subsidies are often considered the principal mechanism through which hospitals provide unprofitable care. Yet, hospitals' reliance on and extent of cross-subsidization are difficult to establish. We exploit entry by cardiac specialty hospitals as an exogenous shock to incumbent hospitals'...

Not-for-profit organizations play a critical role in the American economy. In health care, education, culture, and religion, we trust not-for-profit firms to serve the interests of their donors, customers, employees, and society at large. We know that such firms don't try to maximize profits,...