TY - RPRT AU - Liebert, Helge AU - Mäder, Beatrice TI - Physicians and the Production of Health: Returns to Health Care during the Mortality Transition PY - 2022/Apr/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 15220 UR - https://www.iza.org/publications/dp15220 AB - This paper investigates the returns to health care provision during the mortality transition. We construct a new panel data set covering German municipalities from 1928 to 1936. The endogeneity of health care supply is addressed by using the expulsion of Jewish physicians from statutory health insurance as exogenous variation in regional physician supply. Increases in the supply of physicians reduce infant mortality and mortality from common childhood diseases. Using a semiparametric control function approach, we find diminishing marginal returns to health care provision. The results are consistent with historical trends in infant mortality over the 20th century. KW - mortality transition KW - health care supply KW - physicians KW - infant mortality KW - semiparametric IV ER -