Subsidy Targeting with Market Power

We are grateful to David Card, Keith Ericson, Mark Shepard, and Pietro Tebaldi for their discussions of the paper, and seminar participants at Daniel McFadden 80th Birthday Conference, Junior Health Economics Summit, Ohlstadt Workshop, Stanford University, London School of Economics, American Society of Health Economists, Yale University, University of Connecticut, Columbia University, Bates White Life Sciences Symposium, University of Munich, 2018 REStud Reunion Conference, Rice University, University of Utah, University of Leuven, Georgia State University, UNC Chapel Hill, SUNY Stony Brook, University of Toronto, MIT, 2019 Penn State-Cornell Econometrics & IO Conference, Stanford University, University of Wisconsin Madison, NBER Health Care Meetings, and NBER Public Economics Meetings for helpful comments. We thank Alan Jaske, Lynn Hua, and Vinni Bhatia for excellent research assistance. Support of preliminary work related to this research by the Agency for Healthcare Research and Quality is gratefully acknowledged (grant R03-HS024800). The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.

• October 9, 2019
• January 27, 2021