Many high-income countries have successfully reduced hospital mortality in several acute health conditions.We test the hypothesis that variation in the supply of care directed to saving the life of individuals with ahealth shock may result in increasing the demand for health care as individuals are likely to contribute to thedemand after surviving the health shock. We examined repeated cross-sections of individuals exposed to anAMI or a stroke over a time window of ten years in Denmark. Hospital survival probabilities in the interval 0-30 days from the shock are used as an indicator of the supply, while individual health care expenditure in theinterval 31-365 days is used as an indicator of the demand. We find the demand is highly elastic to supplydrivenvariation in time to death. Results are robust to a placebo test on individuals exposed to the shockwithout entering time to death.
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