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The Demand for Physician Services. Evidence from a Natural Experiment

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  • Bart COCKX

    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES))

  • Carine BRASSEUR

Abstract

This study exploits a natural experiment in Belgium to estimate the effect of co-payment increases on the demand for physician services. It shows how a differences-in-differences estimator of the price effects can be decomposed into effects induced by the common average proportional price increase (income effects) and by the change in relative prices (substitution effects). The price elasticity of a uniform proportional price increase is relatively small (-.13 for mean and -.03 for woman). Substitution effects are large, especially for women, but imprecisely estimated. Despite the substantial price increases, the efficiency gain of the reform, if any, is modest

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Bibliographic Info

Paper provided by Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) in its series Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) with number 2001027.

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Length: 37
Date of creation: 01 Oct 2001
Date of revision:
Handle: RePEc:ctl:louvir:2001027

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Keywords: health care; physician service; co-payment; moral hazard; demand system; differences-in-differences estimator;

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References

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Citations

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Cited by:
  1. Madden, David & Nolan, Anne & Nolan, Brian, 2004. "GP Reimbursement and Visiting Behaviour in Ireland," Papers, Economic and Social Research Institute (ESRI) HRBWP09, Economic and Social Research Institute (ESRI).
  2. Yoshida, Atsushi & Kawamura, Akira, 2009. "Who has benefited from the health services system for the elderly in Japan?," Japan and the World Economy, Elsevier, Elsevier, vol. 21(3), pages 256-269, August.
  3. Nicolas R. Ziebarth, 2009. ""Do I Really Need to Go to Rehab? I'd say No, No, No.": Estimating Price Elasticities of Convalescent Care Programs," SOEPpapers on Multidisciplinary Panel Data Research 212, DIW Berlin, The German Socio-Economic Panel (SOEP).
  4. Erik Schokkaert & Carine Van de Voorde, 2005. "Health care reform in Belgium," Health Economics, John Wiley & Sons, Ltd., vol. 14(S1), pages S25-S39.
  5. Mas, Nuria & Cirera, Laia & Viñolas, Guillem, 2011. "Los sistemas de copago en Europa, Estados Unidos y Canadá: Implicaciones para el caso español," IESE Research Papers, IESE Business School D/939, IESE Business School.
  6. Paolo Buonanno & Matteo M. Galizzi, 2012. "Advocatus, et non Latro? Testing the Supplier-Induced Demand Hypothesis for the Italian Courts of Justice," Carlo Alberto Notebooks, Collegio Carlo Alberto 250, Collegio Carlo Alberto.
  7. NicolasR. Ziebarth, 2010. "Estimating Price Elasticities of Convalescent Care Programmes," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 120(545), pages 816-844, 06.
  8. Nicolas Ziebarth, 2014. "Assessing the effectiveness of health care cost containment measures: evidence from the market for rehabilitation care," International Journal of Health Care Finance and Economics, Springer, Springer, vol. 14(1), pages 41-67, March.
  9. Paolo Buonanno & Matteo M. Galizzi, 2009. "Advocatus, et non latro? Testing the supplier-induced demand hypothesis for Italian courts of justice," Working Papers, University of Brescia, Department of Economics 0914, University of Brescia, Department of Economics.

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