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Contracts for Health Services: Quality Versus Excess Capacity

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Author Info
Boumls, Dieter
Gianni De Fraja

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Abstract

This paper studies the effects of non-contractability of investment on the choices made by a health authority and the hospital with which it contracts for the provision of a specific service. We deal with a situation where the parties must write a short-term contract, that is, where they are prevented from signing a contract before making their investment choices. For this reason inefficiency emerges: the service quality chosen by the hospital is too low, and the health authority relies too much on outside providers.

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Publisher Info
Paper provided by University of Bonn, Germany in its series Discussion Paper Serie A with number 578.

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Length: pages
Date of creation: Aug 1998
Date of revision:
Handle: RePEc:bon:bonsfa:578

Contact details of provider:
Postal: Bonn Graduate School of Economics, University of Bonn, Adenauerallee 24 - 26, 53113 Bonn, Germany
Fax: +49 228 73 9221
Web page: http://www.bgse.uni-bonn.de/index.php?id=517

For technical questions regarding this item, or to correct its listing, contact: (Daniel Park).

Related research
Keywords: Health Services; Incomplete Contracts;

Find related papers by JEL classification:
I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

Statistics
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This page was last updated on 2009-11-15.


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