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'Competition Between Not-For-Profit and For-Profit Hospitals in Small Markets',
October 2006

ABSTRACT: This paper examines the relationship between how hospital owner ship is organized and the intensity of competition in the health care market. I study the question using an empirical entry model. These models typically exhibit multiple equilibria. To resolve this problem, a novel algorithm that computes all the equilibria of the game is developed. This paper uses the algorithm together with two different equilibrium selection rules to estimate the parameters of interest. My findings suggest that for-profit and not-for-profit hospitals are differentiated. I use my estimates to simulate two counterfactuals. First, I study a market were only not-for-profit hospitals exists. The results suggest a decrease in the level of health services. Second, I study a market were not-for-profit firms do not enjoy any tax shelters. I again find a decrease in the level of health services. I conclude that mixed markets are beneficial to consumers.

'Interregional Price Difference in The New Orleans' Auctions Market for Slaves' with Eugene Choo.
March 2007.

ABSTRACT: Our paper investigates the variation of winning bids in slave auctions held in New Orleans from 1804 to 1862. Specifically, we measure the variation in the price of slaves conditional on their geographical origin. Previous work using a regression framework ignored the auction mechanism used to sell slaves. This introduced a bias in the conditional mean of the winning bid since it depended on the number of bidders participating in the auction. Unfortunately, the number of bidders is unobserved by the econometrician. We adopt the standard framework of a symmetric independent private value auction and propose an estimation strategy to attempt to deal with this omitted variable bias. Our estimate of the mean number of bidders doubled from 1804 to 1862. We find the number of bidders had a significant positive effect on the average winning bid. An increase from 20 to 30 bidders in an auction raised the average winning bid by around 10 percent. The price variation according to the geographical origin of slaves found in earlier work continues to persist after accounting for the omitted variable. We also find a new result that a considerable premium is paid for slaves originating from New Orleans. However, this price variation disappears once we account for regional productivity differences.

'Fat City: Questioning the relationship between urban sprawl and obesity',
with Henry G. Overman, Diego Puga, and Matthew A. Turner.
CEPR discussion paper 6191, March 2007.
ABSTRACT: We study the relationship between urban sprawl and obesity. Using data that tracks individuals over time, we find no evidence that urban sprawl causes obesity. We show that previous findings of a positive relationship most likely reflect a failure to properly control for the fact the individuals who are more likely to be obese choose to live in more sprawling neighborhoods. Our results indicate that current interest in changing the built environment to counter the rise in obesity is misguided.

Jean Eid

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