Honors Project - Open Access
This study aims to determine the effect of the Massachusetts Health Care Reform on household health care expenditures. I follow the consumer choice theoretical framework, which says that a change in the price of health care will cause households to adjust their consumption choices based on their preferences. Using data from the Consumer Expenditure Survey, I apply a difference-in-difference technique to isolate the effect of the reform on spending on health care, prescription drugs, and health insurance as a share of total household expenditures. The results are not statistically significant. However, using a difference-in-difference-in-differences estimation to determine the effect of the reform specifically on minorities, I find positive and significant results, which suggests that minorities spent a higher share of their budget on health after the reform. These findings require additional research to better understand how health care reform can affect household spending on health care.
Johns, Caroline, "Determining Household Health Care Spending: An Analysis of the Massachusetts Health Care Reform" (2016). Economics Honors Projects. 81.
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