Daeho Kim is an Assistant Professor of Economics at the Ohio State University. He joined the department in 2012 after receiving his Ph.D. in Economics from Brown University. His research interests focus on Health Economics and Labor Economics.
Dr. Kim's recent project examines Medicare’s impact on hospital insurance, utilization and mortality rates. In particular, the analysis applies an "age discontinuity" design to data both before and after Medicare's introduction in July of 1966. He finds that Medicare increased hospital utilization and costs among the elderly, but at a lower rate than previously found. He also shows clear evidence that Medicare significantly increased life expectancy in the eligible population. In addition, he presents evidence that the benefit-cost ratios of Medicare fell during the 1980s, partly due to changes in Medicare’s reimbursement formula.
Dr. Kim's current research focuses on the impacts of Medicare's Prospective Payment System (PPS) reform in 1983 on the use of medical technology while also assessing the cost-effectiveness of medical technology in the hospital sector. Exploiting the discontinuity in Medicare eligibility at the age of 65 and utilizing data from before and after the PPS reform, he finds that the average cost payments of PPS provided financial incentives for hospitals to expand treatments that had average costs greater than marginal costs due to sizable fixed investments -- i.e., the Medicare payment would be greater than the treatment cost at the margin. He shows that this expansion of costly medical technologies increased health care costs with possibly little health benefits.
Dr. Kim teaches Labor Economics at the advanced undergraduate level.