Working Paper: NBER ID: w23413
Authors: Toshiaki Iizuka; Katsuhiko Nishiyama; Brian Chen; Karen Eggleston
Abstract: We investigate the marginal value of information in the context of health signals after checkups. Although underlying health status is similar for individuals just below and above a clinical threshold, treatments differ according to the checkup signals they receive. For the general population, whereas health warnings about diabetes increase healthcare utilization, health outcomes do not improve at the threshold. However, among high-risk individuals, outcomes do improve, and improved health is worth its cost. These results indicate that the marginal value of health information depends on setting appropriate thresholds for health warnings and targeting individuals most likely to benefit from follow-up medical care.
Keywords: health signals; preventive care; diabetes; marginal value of information
JEL Codes: I10
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
Cause | Effect |
---|---|
Targeting high-risk individuals with elevated blood pressure and cholesterol (I11) | Improvement in health outcomes (I14) |
Crossing the prediabetes threshold (110 mg/dl) (C24) | Increase in medical care utilization (I11) |
Increase in medical care utilization (I11) | No improvement in health outcomes (I14) |
Crossing the diabetic type threshold (126 mg/dl) (C24) | Increase in medical care utilization (I11) |