Jose Pagan

José Pagán
Jose Pagan
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Chair and Professor of the Department of Public Health Policy and Management

Professional overview

Dr. Pagán received his PhD in economics from the University of New Mexico and is a former Robert Wood Johnson Foundation Health & Society Scholar with expertise in health economics and population health. He has led research, implementation, and evaluation projects on the redesign of health care delivery and payment systems. He is interested in population health management, health care payment and delivery system reform, and the social determinants of health. Over the years his research has been funded through grants and contracts from the Department of Defense, the Agency for Healthcare Research and Quality, the National Institutes of Health, the Centers for Medicare & Medicaid Services, the European Commission, and the Robert Wood Johnson Foundation, among others.

Dr. Pagán is Chair of the Board of Directors of NYC Health + Hospitals, the largest public healthcare system in the United States. He also served as Chair of the National Advisory Committee of the Robert Wood Johnson Foundation’s Health Policy Research Scholars and was a member of the Board of Directors of the Interdisciplinary Association for Population Health Science and the American Society of Health Economists.

Areas of research and study

Applied Economics
Health Economics
Population Health
Public Health Policy

Publications

Publications

Start-up capital, microenterprises and technical efficiency in Mexico

Hernández-Trillo, F., Pagán, J. A., & Paxton, J. (n.d.).

Publication year

2005

Journal title

Review of Development Economics

Volume

9

Issue

3

Page(s)

434-447
Abstract
Abstract
Access to adequate start-up capital has been identified as an important deterrent to microenteprise development and growth. Using firm level data from Mexico's National Survey of Microenterprises, we estimate a stochastic frontier production function with inefficiency effects related to the main sources of start-up capital. Microenterprises utilizing bank loans, carryover business capital, moneylenders and credit from clients and suppliers are more technically efficient than those relying on family, friends and on own financial sources. Bank loans led to the highest degree of technical efficiency, indicating a well-functioning screening process despite information asymmetries.Banks tend to offer the largest average loan size with the longest terms which are significant factors in allowing microentrepreneurs to overcome financing constraints.

The decision-making process of health care utilization in Mexico

Brown, C. J., Pagán, J. A., & Rodríguez-Oreggia, E. (n.d.).

Publication year

2005

Journal title

Health policy

Volume

72

Issue

1

Page(s)

81-91
Abstract
Abstract
Using individual-level data from the 2000 Mexican Survey of Satisfaction with Health Services we estimate a two-part negative binomial hurdle model to evaluate the decision-making process of health care utilization in Mexico. We find that there are income-related differences in utilization associated with the first visit to a physician, as well as substantial utilization differences by region, employment, insurance and financial status. There are also income-related differences in the first visit to a specialist but not in the number of days hospitalized. The results suggest that increasing initial access to services via income and insurance coverage and providing financial resources to underserved regions can substantially improve access to care and, ultimately, population health.

The impact of diabetes on employment: Genetic IVs in a bivariate probit

Brown, H. S., Pagán, J. A., & Bastida, E. (n.d.).

Publication year

2005

Journal title

Health Economics

Volume

14

Issue

5

Page(s)

537-544
Abstract
Abstract
Diabetes has been shown to have a detrimental impact on employment and labor market productivity, which results in lost work days and higher mortality/disability. This study utilizes data from the Border Epidemiologic Study on Aging to analyze the endogeneity of diabetes in an employment model. We use family history of diabetes as genetic instrumental variables. We show that assuming that diabetes is an exogenous variable results in an overestimate (underestimate) of the negative impact of diabetes on female (male) employment. Our results are particularly relevant in the case of populations where genetic predisposition has an important role in the etiology of diabetes.

Complementary and alternative medicine: personal preference or low cost option?

Pagan, J., & Pauly, M. V. (n.d.).

Publication year

2004

Journal title

LDI issue brief

Volume

10

Issue

4

Page(s)

1-4
Abstract
Abstract
From acupuncture to yoga, Americans' use of complementary and alternative medicine (CAM) is widespread and growing. The reasons that people give for using CAM are as diverse as the CAM therapies themselves: some perceive that conventional health care is ineffective, while others consider CAM to be more consistent with their own values and beliefs about health. As conventional health care costs rise, it is also possible that some people turn to CAM as a low cost alternative. This Issue Brief summarizes research that evaluates the relationship between CAM use and perceived access to conventional health care.

Economic growth and interfactor/interfuel substitution in Korea

Cho, W. G., Nam, K., & Pagán, J. A. (n.d.).

Publication year

2004

Journal title

Energy Economics

Volume

26

Issue

1

Page(s)

31-50
Abstract
Abstract
This paper investigates the impact of increases in oil consumption and changes in wage rates on the interfactor/interfuel substitution in Korea. A two-stage translog cost function is estimated to incorporate the feedback effect between the interfactor and interfuel substitution. Empirical results show that the substitutability/complementarity relationships among factors and fuels exhibit substantially different patterns before and after 1989.

Reformas al sistema de seguridad social y el mercado laboral en los estados unidos y Canadá

Pagán, J. A. (n.d.).

Publication year

2004

Journal title

Trimestre Economico

Volume

71

Issue

4

Page(s)

943-962
Abstract
Abstract
This study evaluates the labor market impact of the most recent reforms that have been proposed or implemented in the social security systems of the - United States and Canada. The demographic changes experienced by both countries in recent years are an important challenge to the financial solvency of the public pension systems. It is inevitable that in the not too distant future the level of benefits will have to fall, the retirement age will edge up or the payroll taxes will increase so that the systems become financially sustainable. The demographic changes also indicate that privatization schemes will become more popular in the future because they do not redistribute income across generations but rather they are simply forced retirement savings schemes.

Relative employment and earnings of female household heads in Mexico

Pagan, J., & Asgary, N. (n.d.).

Publication year

2004

Journal title

Journal of Developing Areas

Volume

38

Issue

1

Page(s)

93-106

Sectoral selection and informality: A Nicaraguan case study

Pisani, M. J., & Pagán, J. A. (n.d.).

Publication year

2004

Journal title

Review of Development Economics

Volume

8

Issue

4

Page(s)

541-556
Abstract
Abstract
Using microdata from the 1998 and 1993 Nicaraguan Living Standards Measurement Survey, this paper analyzes the relative size and attractiveness of formal and informal sector employment. Switching regression models of the formal/informal sector employment choice indicate that education across years and gender are the primary determinants of formal sector participation. Furthermore, the formal sector is characterized by positive selection. The results for the informal sector are less definitive, but are also suggestive of positive selection. These findings imply that the informal and formal sectors in Nicaragua contribute positively to the overall economy by attracting those individuals best suited for (in)formal sector employment.

Self-employment in the era of the new economic model in Latin America: A case study from Nicaragua

Pisani, M. J., & Pagán, J. A. (n.d.).

Publication year

2004

Journal title

Entrepreneurship and Regional Development

Volume

16

Issue

4

Page(s)

335-350
Abstract
Abstract
Using data from the 1993 and 1998 Nicaraguan Living Standards Measurement Survey, this paper analyses the desirability of self-employment for Nicaraguan men and women over two points in time in a changing economic environment characterized by market-based reforms called the New Economic Model. Switching regressions of the self-employed and waged and salaried sectoral choice suggest that experience is the major determinant of self-employment for both Nicaraguan men and women. Mixed findings are reported for sectoral selection suggesting that the self-employed men, depending upon current economic conditions, may alternate back and forth between the sector (self-employment or waged and salaried employment) with the highest returns. For women, improvement in economic conditions reflected negative selection in both sectors suggesting that much of the economic gains in the 1990s accrued to men.

The Economic Impact of Worker Displacement in the US/Mexico Border Region

Pagan, J. (n.d.). In J. Pagán (Ed.), Worker Displacement in the US/Mexico Border Region (1–).

Publication year

2004

Worker Displacement in the US/Mexico Border Region

Pagan, J. (Ed.). (n.d.). (1–).

Publication year

2004

Government spending, taxation, and oil revenues in Mexico

Tijerina-Guajardo, J. A., & Pagán, J. A. (n.d.).

Publication year

2003

Journal title

Review of Development Economics

Volume

7

Issue

1

Page(s)

152-164
Abstract
Abstract
The paper analyzes the intertemporal relationship between oil duties, taxes, government spending, and GDP in Mexico during the 1981-98 period. The results from estimating a VAR model, impulse response functions. and variance decompositions on the quarterly series of taxes, government spending, oil duties, and GDP suggest that there seems to be a substitution effect between oil duties and tax revenues, and that tax revenues are not able to absorb temporary decreases in oil duties. Also, increases in tax revenue might lead to increasing government spending, but short-run increases in government spending are not likely to lead to political pressure to reduce the expected budget deficit via increased taxation and/or oil revenues. Lastly. GDP is not stimulated in the short-run by temporary increases in government spending and, thus, stabilization measures adopted in recent years to reduce the size of the government are not likely to significantly undermine GDP growth.

Just-in-time purchasing and technical efficiency in the US manufacturing sector

Kaynak, H., & Pagán, J. A. (n.d.).

Publication year

2003

Journal title

International Journal of Production Research

Volume

41

Issue

1

Page(s)

1-14
Abstract
Abstract
This paper analyses the technical productive efficiency effects of implementing just-in-time purchasing (JITP) techniques in the US manufacturing industry. The impact of JITP techniques on technical efficiency is modelled using a stochastic frontier production function that explicitly accounts for JITP-induced efficiency effects. The empirical results suggest that characteristics internal to the organization, such as top management commitment to implementing JITP, are related to higher productive efficiency. External characteristics, such as supplier value-added, or transportation issues, do not appear to be associated with increasing productive efficiency.

Sectoral queuing in a transitional economy: The case of Nicaragua in the 1990s

Pisani, M. J., & Pagán, J. A. (n.d.).

Publication year

2003

Journal title

Labour

Volume

17

Issue

4

Page(s)

571-597
Abstract
Abstract
Using microdata from the 1993 and 1998 Living Standards Measurement Survey (LSMS) of Nicaragua, this paper analyzes the propensity of informal sector workers to queue for formal sector employment as well as employer behavior related to the selection of individuals from the informal sector queue. The nature of the queue is also examined over time to determine informal sector workers' response to national market-based reforms. The results indicate that informal workers do indeed queue for formal sector employment and the nature of the queue has become more pronounced during the time period under consideration.

Employment shifts, economic reform and the changes in public/private sector wages in Mexico: 1987-1997

Pagán, J. A., Gil, J. V., & Tijerina Guajardo, J. A. (n.d.).

Publication year

2002

Journal title

Empirical Economics

Volume

27

Issue

3

Page(s)

447-460
Abstract
Abstract
Over the last decade, the public sector in Mexico experienced substantial fiscal reform, divestiture of public enterprises, and the elimination of many regulations affecting pay and employment. This study analyzes the changes in the public/private sector differences in wages during the 1987-1997 period. The results from analyzing microdata from the Encuesta Nacional de Empleo Urbano show that relative public sector wages increased from 1987 to 1997. Most of the relative wage increase in the public sector can be explained by increases in the price of skills and by changes in sorting across sectors. The results have important public policy implications since they suggest that public sector workers earn more and their wages have grown faster than those of their private sector counterparts. As such, policies contemplating public sector reform should take into account the effect of these measures on the inter-sectoral income distribution and the overall economic growth.

Executive compensation and corporate production efficiency: a stochastic frontier approach

Baek, H., & Pagan, J. (n.d.).

Publication year

2002

Journal title

Quarterly Journal of Business and Economics

Volume

41

Issue

1

Page(s)

27-42

Gender differences in labor market decisions in rural Guatemala

Pagán, J. A. (n.d.).

Publication year

2002

Journal title

Review of Development Economics

Volume

6

Issue

3

Page(s)

428-441
Abstract
Abstract
This study analyzes male-female differences in workforce participation and self-employment in rural Guatemala. Gender differences in rural labor market outcomes are examined using the 1997 Survey of Rural Entrepreneurs and Financial Services, conducted in the rural areas of the departments of San Marcos. Quezaltenango, Huehuetenango. Alta Verapaz, Petén, and Chimiquimula. There are substantial differences in the labor force participation rates of men and women (86.5 vs 24.0 percent) and in self-employment (49.8 vs 31.9 percent). The empirical results suggest that external constraints explain almost all of the observed gender gap in employment. Gender differences in individual endowments and human capital contribute to increase the male-female self-employment gap: however, structural factors help to reduce gender differences in rural entrepreneurship.

Introduction [Symposium: Contemporary Economic Issues in Mexico]

Pagan, J. (n.d.).

Publication year

2002

Journal title

Eastern Economic Journal

Volume

28

Issue

3

Page(s)

363-4

Job queuing in Mexico’s Maquiladoras

Otero, R., & Pagan, J. (n.d.).

Publication year

2002

Journal title

Eastern Economic Journal

Volume

28

Issue

3

Page(s)

393-408

The impact of diabetes on adult employment and earnings of Mexican Americans: Findings from a community based study

Bastida, E., & Pagán, J. A. (n.d.).

Publication year

2002

Journal title

Health Economics

Volume

11

Issue

5

Page(s)

403-413
Abstract
Abstract
Epidemiological studies indicate that minority populations in the US - including African Americans, Native Americans and Mexican Americans - are particularly at risk for diabetes and that their complications are more frequent and severe. Using microdata from a 1994-1999 population based study of middle aged and older Mexican Americans in the Southwest, this study analyzes the impact of diabetes on the employment and earnings outcomes of adults 45 years of age and older. The empirical results from estimating maximum likelihood employment and earnings models suggest that diabetes leads to lower productivity and earnings for women but has no statistically significant impact on their employment probability. In the case of men, however, diabetes leads to a lower employment propensity but has no effect on earnings. Thus, the problems associated with this condition could lead to potential future financial difficulties particularly for high-risk populations in their later years.

The short-term and long-term deterrence effects of INS border and interior enforcement on undocumented immigration

Dávila, A., Pagán, J. A., & Soydemir, G. (n.d.).

Publication year

2002

Journal title

Journal of Economic Behavior and Organization

Volume

49

Issue

4

Page(s)

459-472
Abstract
Abstract
This paper analyzes the short-term and long-term deterrence effects of INS border and interior enforcement. Utilizing FY1983-FY1997 border and interior apprehensions and patrol hours data from the INS, we estimate a four-variable VAR model and find that Border Patrol enforcement has significant short-term deterrence effects. These effects are short-lived as undocumented migrants seemingly adjust to new information. Moreover, the non-existent long-term effects are apparently the consequence of basic economic fundamentals: our analysis employing microdata from both Mexico and the US suggests that the wage gap between Mexico and the US is sufficiently large to maintain the illegal migratory flow.

Assessing the need for microenterprises in Mexico to borrow start-up capital

Heino, H., & Pagan, J. (n.d.).

Publication year

2001

Journal title

Journal of Microfinance

Volume

3

Issue

1

Page(s)

131-44

Explaining Gender Differences in Earnings in the Microenterprise Sector

Sánchez, S., & Pagan, J. (n.d.). In M. Correia & E. Katz (Eds.), The Economics of Gender in Mexico (1–).

Publication year

2001

Gender Issues in Workforce Participation and Self- Employment in Rural Mexico

Pagan, J., & Sánchez, S. M. (n.d.). In M. Correia & E. Katz (Eds.), The Economics of Gender in Mexico (1–).

Publication year

2001

Response asymmetries in the Latin American equity markets

Pagán, J. A., & Soydemir, G. A. (n.d.).

Publication year

2001

Journal title

International Review of Financial Analysis

Volume

10

Issue

2

Page(s)

175-185
Abstract
Abstract
Recent empirical work has found causal relationships with varying degrees of strength from the equity market of Mexico to the markets of Argentina, Brazil, and Chile. In this study, we analyze the possibility of response asymmetries in these causal relationships. In particular, using the 1995-1999 daily data on equity price indices from the International Finance Corporation's (IFC) Emerging Markets Database, we analyze market interconnectedness by explicitly taking into account country-specific response anomalies. We find statistically significant asymmetries in the responses of Argentina, Brazil, and Chile to changes in the Mexican equity market - with responses to downturns much outweighing upturns in the equity market of Mexico. The results are consistent with the view that when investing in emerging equity markets in Latin America, investors react to negative stock market movements originating in the Mexican market more heavily than to positive movements.

Contact

jose.pagan@nyu.edu 708 Broadway New York, NY, 10003