David M. Anderson | Searcharxiv

arXiv2024

Medical Bill Shock and Imperfect Moral Hazard

Consumers are sensitive to medical prices when consuming care, but delays in price information may distort moral hazard. We study how medical bills affect household spillover spending following utilization, leveraging variation in insurer claim processing times. Households increase spending by 22\% after a scheduled service, but then reduce spending by 11\% after the bill arrives. Observed bill effects are consistent with resolving price uncertainty; bill effects are strongest when pricing information is particularly salient. A model of demand for healthcare with delayed pricing information suggests households misperceive pricing signals prior to bills, and that correcting these perceptions reduce average (median) spending by 16\% (7\%) annually.

econ.GN↗

arXiv2024

Principal Component Regression to Study the Impact of Economic Factors on Disadvantaged Communities

The Council on Environmental Quality's Climate and Economic Justice Screening Tool defines "disadvantaged communities" (DAC) in the USA, highlighting census tracts where benefits of climate and energy investments are not accruing. We use a principal component generalized linear model, which addresses the intertwined nature of economic factors, income and employment and model their relationship to DAC status. Our study 1) identifies the most significant income groups and employment industries that impact DAC status, 2) provides the probability of DAC status across census tracts and compares the predictive accuracy with widely used machine learning approaches, 3) obtains historical predictions of the probability of DAC status, 4) obtains spatial downscaling of DAC status across block groups. Our study provides valuable insights for policymakers and stakeholders to develop strategies that promote sustainable development and address inequities in climate and energy investments in the USA.

stat.AP↗