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Competition and Crowding-Out among Public, Non-Profit and For-Profit Organizations: Evidence from Outpatient Substance Abuse Treatment Author info | Abstract | Publisher info | Download info | Related research | Statistics Andrew M. Cohen () (Federal Reserve Board of Governors)
Beth A. Freeborn () (Department of Economics, College of William and Mary)
Brian McManus () (Olin School of Business, Washington University)
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U.S. markets for outpatient substance abuse treatment (OSAT) include clinics that are private for-profit, private non-profit, and public (i.e., government-run). We study the market structure of OSAT using recently-developed methods from the empirical industrial organization literature on equilibrium market structure in differentiated product markets. These methods allow us to describe OSAT clinics as heterogeneous in their objectives, their responses to exogenous market characteristics, and their responses to one another. We find that the presence of a public clinic in a market reduces the probability that a private clinic will also participate in the market, which is consistent with crowding-out between public and private provision of OSAT. Crowding out appears to be more prevalent in markets with larger white populations.
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Paper provided by Department of Economics, College of William and Mary in its series Working Papers with number
52.
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Length: 37 pages
Date of creation: 04 May 2007Date of revision:
Handle: RePEc:cwm:wpaper:52Contact details of provider: Postal: P.O. Box 8795, Williamsburg, VA 23187-8795 Phone: (757) 221-4311 Fax: (757) 221-2390 Web page: http://www.wm.edu/economics/ More information through EDIRC
For technical questions regarding this item, or to correct its listing, contact: (Beth A Freeborn).
Keywords: discrete games multiple equilibria structural estimation healthcare markets substance abuse treatment crowding out Find related papers by JEL classification: C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games H4 - Public Economics - - Publicly Provided Goods I1 - Health, Education, and Welfare - - Health L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance L3 - Industrial Organization - - Nonprofit Organizations and Public Enterprise
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