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Unofficial payments for acute state hospital care in Kazakhstan. A model of physician behaviour with price discrimination and vertical service differentiation

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  • Xavier, Ana

    (Catholic University of Leuven, Belgium)

  • Robin Thompson

Abstract

We consider a discriminatory pricing and service differentiation model where: a)state physicians exploit their monopoly position and adjust quality to the unofficial payment made, and b)patients, perceiving state provision as poor, pay unofficially to improve it. Applying OLS and probit analysis to survey data on patients discharged from Almaty City hospitals, and using admission wait, length of stay (LOS) and a subjective categorical variable as quality measures. Unofficial payments are positively associated with surgical admission wait and the subjective quality of care while negatively associated with hospital LOS. Evidence suggests that price discrimination and service differentiation takes place in Kazakhstan.

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Bibliographic Info

Paper provided by Royal Economic Society in its series Royal Economic Society Annual Conference 2003 with number 224.

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Date of creation: 04 Jun 2003
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Handle: RePEc:ecj:ac2003:224

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Keywords: transition economies; unofficial or informal payments for health care; length of stay; ordered probit and marginal effects;

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Cited by:
  1. Sonila Tomini & Wim Groot & Milena Pavlova, 2012. "Paying informally in the Albanian health care sector: a two-tiered stochastic frontier model," The European Journal of Health Economics, Springer, vol. 13(6), pages 777-788, December.
  2. Hunt, Jennifer, 2007. "Bribery in Health Care in Peru and Uganda," CEPR Discussion Papers 6274, C.E.P.R. Discussion Papers.
  3. Jennifer Hunt, 2006. "How Corruption Hits People When They Are Down," NBER Working Papers 12490, National Bureau of Economic Research, Inc.
  4. World Bank, 2011. "Albania - Out-of-Pocket Payments in Albania’s Health System : Trends in Household Perceptions and Experiences 2002-2008," World Bank Other Operational Studies 2784, The World Bank.
  5. Robin Thompson & Ana Xavier, 2010. "Are Patients in the Transition World Paying Unofficially to Stay Longer in Hospital? Some Evidence from Kazakhstan," Working Papers id:2485, eSocialSciences.

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