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Time prices and the demand for GP services

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  • Janssen, Richard
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    Abstract

    This paper analyzes the effects of time prices on the demand for general practitioner (GP) services. Where data on earnings per unit of time was not available, an alternative method was used to impute the value of time. Separate elasticities were estimated using interactive dummy variables for individual employment status. Furthermore, a distinction was made between patient-initiated and physician-initiated visits to a GP. The results show that the probability of a patient-initiated visit is negatively influenced by the time required, for 4 of the 6 employment status categories defined. For a subsample, time was valued on the basis of earnings per time unit. The resulting time price was found to have a significant negative impact on the probability of a patient-initiated visit to a GP. However neither time nor time prices have any effect on the probability of a physician-initiated visit. It can therefore be concluded that time prices are a relevant factor in the determination of demand for GP services, particularly if it is the patient who is making the decision. Ignoring time prices could result in the mis-specification of demand equations, obtaining biased results from statistical analyses and wrongly assessing policy implications.

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    Bibliographic Info

    Article provided by Elsevier in its journal Social Science & Medicine.

    Volume (Year): 34 (1992)
    Issue (Month): 7 (April)
    Pages: 725-733

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    Handle: RePEc:eee:socmed:v:34:y:1992:i:7:p:725-733

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    Related research

    Keywords: time price general practitioner services demand analysis;

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    Cited by:
    1. De Luca, Giuliana & Ponzo, Michela, 2009. "Primary care utilisation and workers’ opportunity costs. Evidence from Italy," MPRA Paper 24201, University Library of Munich, Germany.
    2. �scar D. Lourenço & Pedro L. Ferreira, 2005. "Utilization of public health centres in Portugal: effect of time costs and other determinants. Finite mixture models applied to truncated samples," Health Economics, John Wiley & Sons, Ltd., vol. 14(9), pages 939-953.
    3. Kim, Jiyun & Ko, Sukyoung & Yang, Bongmin, 2005. "The effects of patient cost sharing on ambulatory utilization in South Korea," Health Policy, Elsevier, vol. 72(3), pages 293-300, June.
    4. De Luca, Giuliana & Ponzo, Michela, 2009. "Access to primary care and workers’ opportunity costs. Evidence from Italy," MPRA Paper 15479, University Library of Munich, Germany.
    5. Stéphane Jacobzone & Lise Rochaix, 1997. "L'hypothèse de demande induite : un bilan économique," Économie et Prévision, Programme National Persée, vol. 129(3), pages 25-36.

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