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Pricing and Location of Physician Services in Mental Health

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  • Richard G. Frank
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    Abstract

    Puzzling results of a positive association between the number of physicians per capita and the level of fees for physician services have been reported in the literature. These results may be due to misspecification of econometric models and use of data aggre-gated across medical specialties. It is hypothesized that the unusual results would not persist with a carefully specified econometric model for a single medical specialty. A general model of pricing and location of physician's services is applied to the market for psychiatrist's services. The results imply that the market for psychiatrist's services operates in a manner consistent with the predictions of the competitive model.

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    File URL: http://www.nber.org/papers/w1514.pdf
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    Bibliographic Info

    Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 1514.

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    Date of creation: Dec 1984
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    Publication status: published as Frank, Richard G. "Pricing and Location of Physician Services in Mental Health." Economic Inquiry, Vol. 23, No. 1, (January 1985), pp. 115-133.
    Handle: RePEc:nbr:nberwo:1514

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    1. Newhouse, Joseph P. & Phelps, Charles E. & Marquis, M. Susan, 1980. "On having your cake and eating it too : Econometric problems in estimating the demand for health services," Journal of Econometrics, Elsevier, Elsevier, vol. 13(3), pages 365-390, August.
    2. Victor R. Fuchs, 1978. "The Supply of Surgeons and the Demand for Operations," NBER Working Papers 0236, National Bureau of Economic Research, Inc.
    3. Feldstein, Martin S, 1970. "The Rising Price of Physicians' Services," The Review of Economics and Statistics, MIT Press, vol. 52(2), pages 121-33, May.
    4. Victor R. Fuchs & Marcia J. Kramer, 1972. "Determinants Of Expenditures For Physicians' Services In The United States 1948-68," NBER Books, National Bureau of Economic Research, Inc, number fuch72-3.
    5. Mundlak, Yair, 1978. "On the Pooling of Time Series and Cross Section Data," Econometrica, Econometric Society, Econometric Society, vol. 46(1), pages 69-85, January.
    6. Joseph P. Newhouse & Charles E. Phelps, 1976. "New Estimates of Price and Income Elasticities of Medical Care Services," NBER Chapters, in: The Role of Health Insurance in the Health Services Sector, pages 261-320 National Bureau of Economic Research, Inc.
    7. Steinwald, Bruce & Sloan, Frank A, 1974. "Determinants of Physicians' Fees," The Journal of Business, University of Chicago Press, University of Chicago Press, vol. 47(4), pages 493-511, October.
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