Guy David

Guy David
  • Gilbert and Shelley Harrison Associate Professor of Health Care Management
  • Associate Professor, Medical Ethics and Health Policy, Perelman School of Medicine

Contact Information

  • office Address:

    305 Colonial Penn Center
    3641 Locust Walk
    Philadelphia, PA 19104

Research Interests: applied microeconomics, emergency medical services, health economics, industrial organization, nonprofit organizations, post-acute care, primary care, regulation

Links: CV, Personal Website

Overview

Education

PhD, University of Chicago, 2004; MA, Tel-Aviv University, 1997; BA, Tel-Aviv University, 1995

Career and Recent Professional Awards; Teaching Awards

National Bureau of Economic Research Dissertation Fellowship Award 2003-04; University of Pennsylvania Research Foundation Award 2006 and 2009; Leonard Davis Institute of Health Economics Pilot Project Program Award 2007 and 2009; Center for Health Management Research Grant Award, 2008; National Institute of Health Grant Award 2008; Wharton School Excellence-in-Teaching Award for the Undergraduate Division, 2014

Academic Positions Held

Wharton: 2004-present

Senior Fellow, The Leonard Davis Institute of Health Economics: 2004-present

Research Associate, Health Care Program, National Bureau of Economic Research: 2010-present

For more information, go to my Personal Website and my Personal Statement

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Research

  • Cory Capps, Dennis Carlton, Guy David (Under Review), Antitrust Treatment of Nonprofits: Should Hospitals Receive Special Care?.

    Abstract: Nonprofit hospitals receive favorable tax treatment in exchange for providing socially beneficial activities. Extending this rationale suggests that nonprofit hospital mergers should be evaluated differently than mergers of for-profit hospitals because suppression of competition may also allow nonprofits to cross-subsidize care for the poor. Using detailed California data, we find no evidence that nonprofit hospitals are more likely than for-profit hospitals to provide more charity care or offer unprofitable services in response to an increase in market power. Therefore, we find no empirical justification for different antitrust standards for nonprofit hospitals, as some courts have suggested.

  • Guy David and Sara Markowitz (Under Review), Side Effects of Competition: the Role of Advertising and Promotion in Pharmaceutical Markets.

    Abstract: The extent of pharmaceutical advertising and promotion can be characterized by a balancing act between profitable demand expansions and potentially unfavorable subsequent regulatory actions. However, this balance also depends on the nature of competition (e.g. monopoly versus oligopoly). In this paper we model the firm’s behavior under different competitive scenarios and test the model’s predictions using a novel combination of sales, promotion, advertising, and adverse event reports data. We focus on the market for erectile dysfunction drugs as the basis for estimation. This market is ideal for analysis as it is characterized by an abrupt shift in structure, all drugs are branded, the drugs are associated with adverse health events, and have extensive advertising and promotion. We find that advertising and promotion expenditures increase own market share but also increase the share of adverse drug reactions. Competitors’ spending decreases market share, while also having an influence on adverse drug reactions.

  • Elena Andreyeva, Guy David, Hummy Song, The Effects of Home Health Visit Length on Hospital Readmission.

  • Guy David, Philip Saynisch, Somesh Nigam, Candace Gunnarsson (2015), Do Patient-Centered Medical Homes Reduce Emergency Department Visits?, Health Services Research.

  • Guy David, Rich Lindrooth, Lorens Helmchen, Lawton R. Burns (2014), Do Hospitals Cross Subsidize?, Journal of Health Economics.

  • Daniel Polsky, Guy David, Bruce Kinosian, Jianing Yang, Rachel M. Werner (2014), The Effect of Entry Regulation in the Health Care Sector: the Case of Home Health, Journal of Public Economics.

  • Guy David, Sara Markowitz, William Pajerowski (2013), Side Effects of Competition, Harvard Health Policy Review.

  • Jeffrey H. Silber, PR Rosenbaum, RR Kelz, CE Reinke, MD Neuman, RN Ross, O Even-Shoshan, Guy David, PA Saynisch, FA Kyle, DW Bratzler, LA Fleisher (2012), Medical and financial risks associated with surgery in the elderly obese, Ann Surg, 256(1):79-86.

  • Tanguy Brachet, Guy David, Andrea Drechsler (2012), The Effect of Shift Structure on Performance, American Economic Journal, 4, pp. 219-246.

  • Tanguy Brachet, Guy David, Andrea Millman (HCMG) (2011), The Effect of Shift Structure on Performance, American Economic Journal – Applied Economics.

    Abstract: The effect of shift structure on worker performance and productivity has been an issue of increasing interest among firms and regulatory bodies, motivated by the belief that fatigue is a critical mediator. We study this issue using approximately 742,000 emergency trauma and medical incidents attended by 2,381 paramedics in the state of Mississippi between 2001 and 2005, and evaluate the extent to which performance of paramedics towards the end of their shift is impacted by its length. We find that paramedics exhibit poorer performance towards the end of long shifts, compared to their performance towards the end of shorter shifts. In addition, at the end of longer shifts, paramedics perform fewer medical interventions while the speed with which procedures are performed deteriorates significantly. We argue that fatigue is the mediating factor in the observed decline in performance. These findings have implications for workforce organization and call attention to regulation designed to limit extended work hours.

Teaching

Current Courses

  • HCMG900 - Proseminar In Hsr

    900-001 Proseminar in Health Econometrics: This course will cover empirical methods used in economics research with an emphasis on applications in health care and public economics. The methods covered include linear regression, matching, panel data models, instrumental variables, regression discontinuity, bunching,qualitative and limited dependent variable models, count data, quantile regressions, and duration models. The discussion will be a mix of theory and application, with emphasis on the latter. The readings consist of a blend of classic and recent methodological and empirical papers in economics . Course requirements include several problem sets, paper presentations, an econometric analysis project and a final exam. The course is open to doctoral students from departments other than Health Care Management with permission from the instructor. 900-002 Proseminar in Health Economics: Models and Methods: This course is intended to provide entering doctoral students with information on the variety of health economics models, methods, topics, and publication outlets valued and used by faculty in the HCMG doctoral program and outside of it. The course has two main parts: the first, to acquaint students with theoretical modeling tools used frequently by health economists. This part of the course involves a number of lectures coupled with students presentations of class projects in a workshop environment. The second part of the course will offer presentations from the health economics, management and operations research community at Penn on a research method or strategy they have found helpful and they think is important for all doctoral students to know.

    HCMG900002

Past Courses

  • HCMG202 - ECON & FINCING-HLTHCR DL

    The course provides an application of economic models to demand, supply, and their interaction in the medical economy. Influences on demand, especially health status, insurance coverage, and income will be analyzed. Physician decisions on the pricing and form of their own services, and on the advice they offer about other services, will be considered. Competition in medical care markets, especially for hospital services, will be studied. Special emphasis will be placed on government as demander of medical care services. Changes in Medicare and regulation of managed care are among the public policy issues to be addressed.

  • HCMG302 - ECON & FIN HLTH CARE DEL

    This course provides an application of economic principles to the health care sector. By recognizing the importance of scarcity and incentives, this course will focus on the critical economic issues in producing, delivering, and financing health care. In particular, the course will analyze determinants of demand for medical care, such as health status, insurance coverage, and income; the unique role of physicians in guiding and shaping the allocation of resources in medical care markets; and competition in medical care markets, especially among hospitals. Special emphasis will be placed on the evaluation of policy instruments such as government regulation, antitrust laws, 'sin taxes' on cigarettes and alcohol, and public health programs. This course is similar to HCMG 202, but uses more advanced quantitative methods and formal economic theory; knowledge of calculus and basic microeconomics is recommended. Students who take HCMG 302 may not also take HCMG 202 (ECON 039) for further credit.

  • HCMG352 - HEALTH SERVICES DELIVERY

    The purpose of this course is to apply economics to an analysis of the health care industry, with special emphasis on the unique characteristics of the US healthcare markets, from pre-hospital to post-acute care. This course focuses on salient economic features of health care delivery, including: the role of nonprofit providers, the effects of regulation and antitrust activity on hospitals, the degree of input substitutability within hospitals, the nature of competition in home health care, public versus private provision of emergency medical services, the effect of specialty hospitals and ambulatory surgery centers, the economics of direct-to-consumer advertising and its effect on drug safety, defining and improving medical performance in hospitals, specialization and investment in physical and human capital, and shifting of services between inpatient and outpatient settings and its effect on health care costs and quality.

  • HCMG852 - HEALTH CARE SERVICES DEL

    The purpose of this course is to apply economics to an analysis of the health care industry, with special emphasis on the unique characteristics of the US healthcare markets, from pre-hospital to post-acute care. This course focuses on salient economic features of health care delivery, including: the role of nonprofit providers, the effects of regulation and antitrust activity on hospitals, the degree of input substitutability within hospitals, the nature of competition in home health care, public versus private provision of emergency medical services, the effect of specialty hospitals and ambulatory surgery centers, defining and improving medical performance in hospitals, specialization and investment in physical and human capital, shifting of services between inpatient and outpatient settings and its effect on health care costs and quality, and innovation in primary care from retail clinics to patient-centered medical homes and retainer-based medicine.

  • HCMG900 - PROSEMINAR IN HSR

    900-001 Proseminar in Health Econometrics: This course will cover empirical methods used in economics research with an emphasis on applications in health care and public economics. The methods covered include linear regression, matching, panel data models, instrumental variables, regression discontinuity, bunching,qualitative and limited dependent variable models, count data, quantile regressions, and duration models. The discussion will be a mix of theory and application, with emphasis on the latter. The readings consist of a blend of classic and recent methodological and empirical papers in economics . Course requirements include several problem sets, paper presentations, an econometric analysis project and a final exam. The course is open to doctoral students from departments other than Health Care Management with permission from the instructor. 900-002 Proseminar in Health Economics: Models and Methods: This course is intended to provide entering doctoral students with information on the variety of health economics models, methods, topics, and publication outlets valued and used by faculty in the HCMG doctoral program and outside of it. The course has two main parts: the first, to acquaint students with theoretical modeling tools used frequently by health economists. This part of the course involves a number of lectures coupled with students presentations of class projects in a workshop environment. The second part of the course will offer presentations from the health economics, management and operations research community at Penn on a research method or strategy they have found helpful and they think is important for all doctoral students to know.

  • HCMG903 - ECON HLTH CR & POLICY

    This course applies basic economic concepts to analyze the health care market and evaluate health policies. The course begins with a discussion of productivity in health care and of the theoretical and empirical effects of asymmetric information and market failure. The second part of the course explores several topic areas in the health care economics literature: health insurance and the labor market; health policy interventions; and health as human capital. The third part of the course examines competition and the behavior of health care providers, with emphasis on the impact of policy on competition, behavior, and finally, bringing us full circle, health care productivity.

Activity

Latest Research

Cory Capps, Dennis Carlton, Guy David (Under Review), Antitrust Treatment of Nonprofits: Should Hospitals Receive Special Care?.
All Research

In the News

An Innovative Way to Improve Care for Chronically Ill Patients

Adopting a new model to treat such illnesses as diabetes and hypertension can cut down on hospital ER visits, according to new research by Wharton professor Guy David and four others.

Knowledge @ Wharton - 2014/08/14
All News