Competition Saves Lives--Who Knew?

From Division of Labor.

"Part of the abstract of a paper by Martin Gaynor, Rodrigo Moreno-Serra, and Carol Propper in the new issue of the AEJ: Economic Policy:

The English government introduced a policy in 2006 to promote competition between hospitals. Using this policy to implement a difference-in-differences research design, we estimate the impact of the introduction of competition on not only clinical outcomes but also productivity and expenditure. We find that the effect of competition is to save lives without raising costs."