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Paying for performance and motivation crowding out

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  • Siciliani, Luigi

Abstract

We investigate how prices affect output when publicly-funded providers differ in altruism, and enjoy being perceived as good and not as greedy. A higher price increases output for low and high-altruism providers. Intermediate-altruism providers do not respond or reduce output.

Suggested Citation

  • Siciliani, Luigi, 2009. "Paying for performance and motivation crowding out," Economics Letters, Elsevier, vol. 103(2), pages 68-71, May.
  • Handle: RePEc:eee:ecolet:v:103:y:2009:i:2:p:68-71
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    References listed on IDEAS

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    Cited by:

    1. Allen, Thomas & Whittaker, William & Sutton, Matt, 2017. "Does the proportion of pay linked to performance affect the job satisfaction of general practitioners?," Social Science & Medicine, Elsevier, vol. 173(C), pages 9-17.
    2. Brosig-Koch, Jeannette & Hennig-Schmidt, Heike & Kairies-Schwarz, Nadja & Wiesen, Daniel, 2015. "The Effects of Introducing Mixed Payment Systems for Physicians – Experimental Evidence," Ruhr Economic Papers 543, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    3. Reichert, Arndt R. & Stroka, Magdalena A., 2014. "Nursing Home Prices and Quality of Care - Evidence from Administrative Data," Ruhr Economic Papers 470, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    4. Bassi, Matteo & Pagnozzi, Marco & Piccolo, Salvatore, 2014. "Optimal contracting with altruism and reciprocity," Research in Economics, Elsevier, vol. 68(1), pages 27-38.
    5. Godager, Geir & Wiesen, Daniel, 2013. "Profit or patients’ health benefit? Exploring the heterogeneity in physician altruism," Journal of Health Economics, Elsevier, vol. 32(6), pages 1105-1116.
    6. Arndt R. Reicher & Magdalena Stroka, 2014. "Nursing Home Prices and Quality of Care - Evidence from Administrative Data," Ruhr Economic Papers 0470, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    7. repec:eee:jhecon:v:55:y:2017:i:c:p:1-13 is not listed on IDEAS
    8. repec:zbw:rwirep:0331 is not listed on IDEAS
    9. Fiorentini, Gianluca & Lippi Bruni, Matteo & Ugolini, Cristina, 2013. "GPs and hospital expenditures. Should we keep expenditure containment programs alive?," Social Science & Medicine, Elsevier, vol. 82(C), pages 10-20.
    10. repec:zbw:rwirep:0470 is not listed on IDEAS
    11. Nadja Kairies, 2012. "P4P, Reputation and the Reduction of Costly Overprovision," Ruhr Economic Papers 0331, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    12. Francesca Barigozzi & Gilberto Turati, 2009. "Human Health Care and Selection Effects. Understanding Labour Supply in the Market for Nurses," CHILD Working Papers wp18_09, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY.
    13. Lamantia, Fabio & Pezzino, Mario, 2016. "Evolutionary efficacy of a Pay for Performance scheme with motivated agents," Journal of Economic Behavior & Organization, Elsevier, vol. 125(C), pages 107-119.
    14. Anthony Scott & Peter Sivey, 2017. "Motivation and Competition in Health Care," Melbourne Institute Working Paper Series wp2017n05, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    15. Iezzi, Elisa & Lippi Bruni, Matteo & Ugolini, Cristina, 2014. "The role of GP's compensation schemes in diabetes care: Evidence from panel data," Journal of Health Economics, Elsevier, vol. 34(C), pages 104-120.
    16. Yan Feng, 2012. "A developed theoretical model of paid and unpaid work in healthcare supply," Economics Bulletin, AccessEcon, vol. 32(4), pages 3082-3089.
    17. Kairies, Nadja, 2012. "P4P, Reputation and the Reduction of Costly Overprovision," Ruhr Economic Papers 331, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.

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    Keywords

    Altruism Performance Motivation;

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