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Income effects and physician labour supply: evidence from the threshold system in Ontario

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Author Info
Jasmin Kantarevic
Boris Kralj
Darrel Weinkauf

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Abstract

We examine a reform to the physician threshold system in Ontario that provides a unique opportunity to assess the effect of fee changes on physician behaviour, free from the biases that potentially affect simple time-series or cross-section inference. We find that: (1) the income effects of fee changes are small, but significant; (2) the income effect dominates the substitution effect only for a minority of services with relatively low prices and high volumes; and (3) the cross effects of fee changes tend to be significant only for services with relatively high prices and low volumes.

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File URL: http://economics.ca/cgi/xms?jab=v41n4/CJEv41n4p1262.pdf
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File Function: Full text
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Publisher Info
Article provided by Canadian Economics Association in its journal Canadian Journal of Economics.

Volume (Year): 41 (2008)
Issue (Month): 4 (November)
Pages: 1262-1284
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Handle: RePEc:cje:issued:v:41:y:2008:i:4:p:1262-1284

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Find related papers by JEL classification:
I12 - Health, Education, and Welfare - - Health - - - Health Production
I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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This page was last updated on 2009-11-25.

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