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Doctor Competence and the Demand for Healthcare: Evidence from Rural China

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  • Eduardo Fe
  • Timothy Powell‐Jackson
  • Winnie Yip

Abstract

The agency problem between patients and doctors has long been emphasised in the health economics literature, but the empirical evidence on whether patients can evaluate and respond to better quality care remains mixed and inconclusive. Using household data linked to an assessment of village doctors' clinical competence in rural China, we show that there is no correlation between doctor competence and patients' healthcare utilisation, with confidence intervals reasonably tight around zero. Household perceptions of quality are an important determinant of care‐seeking behaviour, yet patients appear unable to recognise more competent doctors – there is no relationship between doctor competence and perceptions of quality. Copyright © 2016 John Wiley & Sons, Ltd.

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  • Eduardo Fe & Timothy Powell‐Jackson & Winnie Yip, 2017. "Doctor Competence and the Demand for Healthcare: Evidence from Rural China," Health Economics, John Wiley & Sons, Ltd., vol. 26(10), pages 1177-1190, October.
    • Handle: RePEc:wly:hlthec:v:26:y:2017:i:10:p:1177-1190
    DOI: 10.1002/hec.3387
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    2. Yiwei Chen & Hui Ding & Min Yu & Jieming Zhong & Ruying Hu & Xiangyu Chen & Chunmei Wang & Kaixu Xie & Karen Eggleston, 2019. "The Effects of Primary Care Chronic-Disease Management in Rural China," NBER Working Papers 26100, National Bureau of Economic Research, Inc.

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