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Moonlighting: Public Service and Private Practice Author info | Abstract | Publisher info | Download info | Related research | Statistics Gary Biglaiser () (University of North Carolina)
Ching-to Albert Ma () (Boston University)
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We study dual job incentives with a focus on public-service physicians referring patients to their private practices. We call this moonlighting. Not all physicians moonlight; we introduce a group of dedicated doctors who in the base models behave sincerely in the public system. Allowing moonlighting always enhances aggregate consumer welfare. The equilibrium care quality in the public system may increase or decrease; in the former situation, the policy allowing moonlighting improves each consumer’s expected utility. Unregulated moonlighting may be detrimental to consumer welfare when it leads to adverse behavioral reactions such as moonlighters shirking more in the public system, and dedicated doctors abandoning their sincere behavior. Price regulation in the private market tradeoffs the efficiency gain from moonlighting against the loss due to adverse behavior in the public system and improve consumer welfare.
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Paper provided by Portuguese Competition Authority in its series Working Papers with number
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Length: 35 pages
Date of creation: Nov 2006Date of revision:
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Keywords: Moonlighting Dual Job Dual Practice Public Service Private Practice Physician Incentives Physician Moonlighting Other versions of this item:
Find related papers by JEL classification: I10 - Health, Education, and Welfare - - Health - - - General I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
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