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@techreport{NBERw31030,
 title = "Market Size and Trade in Medical Services",
 author = "Dingel, Jonathan I and Gottlieb, Joshua D and Lozinski, Maya and Mourot, Pauline",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "31030",
 year = "2023",
 month = "March",
 doi = {10.3386/w31030},
 URL = "http://www.nber.org/papers/w31030",
 abstract = {We measure the importance of increasing returns to scale and trade in medical services. Using Medicare claims data, we document that “imported” medical care — services produced by a medical provider in a different region — constitute about one-fifth of US healthcare consumption. Larger regions specialize in producing less common procedures, which are traded more. These patterns reflect economies of scale: larger regions produce higher-quality services because they serve more patients. Because of increasing returns and trade costs, policies to improve access to care face a proximity-concentration tradeoff. Production subsidies and travel subsidies can impose contrasting spillovers on neighboring regions.},
}