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Regional density of private dentists: Empirical evidence from Austria

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Author Info

  • Gächter, Martin

    ()
    (Oesterreichische Nationalbank)

  • Schwazer, Peter

    ()
    (Department of Economics and Statistics, University of Innsbruck)

  • Theurl, Engelbert

    ()
    (Department of Economics and Statistics, University of Innsbruck)

  • Winner, Hannes

    ()
    (University of Salzburg)

Abstract

Objectives: We investigated the determinants of disparities in the regional density of private dentists in Austria. Specifically, we focused on the relationship between the density of private dentists and their public counterparts, thereby controlling for other possible covariates of dentist density. Methods: Dentist density was measured at the district level. We used panel data of dentist density from 121 Austrian districts over the years 2001 to 2008. We applied a Hausman-Taylor framework to cope with possible endogeneity and to control for cross-district effects in the dentist density. Results: A significant negative relationship was found between the density of private and public dentists, indicating a substitution effect between the two dentist groups. A significant positive spatial relationship also existed for private and public dentists in the neighboring regions. Dental capacities in public and private hospitals and dental laboratories run by the public health insurance system did not have a significant effect on private dentist density. Conclusions: Although a strong negative relationship existed between private and public dentists within the districts, one should not draw the conclusion that private dentists in Austria are close substitutes for public dentists. Such a conclusion would require further empirical analysis on the utilization patterns of dental services and their relationships with financing mechanisms.

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Bibliographic Info

Paper provided by University of Salzburg in its series Working Papers in Economics and Finance with number 2012-8.

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Length: 24 pages
Date of creation: 19 Oct 2012
Date of revision:
Handle: RePEc:ris:sbgwpe:2012_008

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Keywords: Competition in health care markets; dentist location and density; models with panel data;

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  1. Gächter, Martin & Schwazer, Peter & Theurl, Engelbert & Winner, Hannes, 2011. "Physician Density in a Two-Tiered Health Care System," Working Papers in Economics and Finance 2011-5, University of Salzburg.
  2. Martin Gaynor & Deborah Haas-Wilson, 1998. "Change, Consolidation, and Competition in Health Care Markets," HEW 9809001, EconWPA.
  3. Bruce Carpenter & Stephen Neun, 1999. "An analysis of the location decision of young primary care physicians," Atlantic Economic Journal, International Atlantic Economic Society, vol. 27(2), pages 135-149, June.
  4. Gaynor, Martin, 1994. "Issues in the Industrial Organization of the Market for Physician Services," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 3(1), pages 211-55, Spring.
  5. Propper, Carol, 2000. "The demand for private health care in the UK," Journal of Health Economics, Elsevier, vol. 19(6), pages 855-876, November.
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