Productivity spillovers are often cited as a reason for geographic specialization in production. A large literature in … show that a simple Roy model of patient treatment choice with productivity spillovers can generate these facts. Our model …

The conventional wisdom in health economics is that large differences in average productivity across hospitals are the …, however, we find that productivity dispersion in heart attack treatment across hospitals is, if anything, smaller than in … productivity today is associated with about 4 percent more patients in 5 years. Taken together, these facts suggest that the …