IDEAS home Printed from
   My bibliography  Save this article

A developed theoretical model of paid and unpaid work in healthcare supply


  • Yan Feng

    () (Office of Health Economics)


We investigate how the increase in the rate of performance related payment affects the healthcare supply in paid and unpaid work. The developed theoretical model shows that a higher price incentivises the supply of paid work. Its impact on unpaid work is determined by the trade-off between crowding effect, effects of the increased opportunity costs and available income. This note provides one of the first attempts in health economics to incorporate the crowding effect and opportunity costs of supply unpaid work into health providers' utility functions and to consider the effect of a change in income within this theoretical framework.

Suggested Citation

  • Yan Feng, 2012. "A developed theoretical model of paid and unpaid work in healthcare supply," Economics Bulletin, AccessEcon, vol. 32(4), pages 3082-3089.
  • Handle: RePEc:ebl:ecbull:eb-12-00694

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Chalkley, Martin & Malcomson, James M., 1998. "Contracting for health services when patient demand does not reflect quality," Journal of Health Economics, Elsevier, vol. 17(1), pages 1-19, January.
    2. Siciliani, Luigi, 2009. "Paying for performance and motivation crowding out," Economics Letters, Elsevier, vol. 103(2), pages 68-71, May.
    3. Le Grand, Julian, 2003. "Motivation, Agency, and Public Policy: Of Knights and Knaves, Pawns and Queens," OUP Catalogue, Oxford University Press, number 9780199266999.
    Full references (including those not matched with items on IDEAS)

    More about this item


    unpaid work; financial incentives; crowding effect; time allocation;

    JEL classification:

    • I1 - Health, Education, and Welfare - - Health
    • H4 - Public Economics - - Publicly Provided Goods


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-12-00694. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (John P. Conley). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.