Week 9 – Fifteen Minutes of Fame

Apr 17, 2019

Hello Again! This week, I had my AP Research Presentation to the faculty, so, in preparation, I’ll discuss a few econometric graphs that I utilized to explain the rising problem of healthcare prices in the Bay Area.

In a study by Dr. Michael Dickstein at UC Berkeley, healthcare prices and charges were found to be rising at an unjustified rate in the Bay Area in comparison to the rest of the markets in Bay Area. To portray this rather complicated idea, I took the econometric source data that Dr. Michael Dickstein used and created my own graphs to represent the artificial distortion that existed in the Bay Area.

This initial graph is the ratio of hospital billing charges to hospital billing payments. This should properly represent the overall price that consumers had to pay over time. Over a period of 1995 to 2015, the GPR/NPR ratio showed an almost two-fold increase. However, Dr. Brown offered a hypothesis that this could simply be due to natural economic variances.

To control for natural economic variances, I also graphed the inflation over the same period of time.

This graph shows that there is a large area of artificial distortion in the healthcare prices market that can’t be explained by inflation or other representation of natural economic variances. Ultimately, there is no real clear mechanism to this rise in healthcare prices, so this is why I tested my hypothesis on the positive relationship of healthcare prices and medical billing errors.

I hope that some of my econometric work was understandable and interesting. Next week, I’ll wrap up my project with my conclusion and policy recommendation.

One Reply to “Week 9 – Fifteen Minutes of Fame”

  1. Krip R. says:

    The trends in your graphs are staggering. I can’t wait to see your conclusions and implications.

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