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A theoretical approach to dual practice regulations in the health sector

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  • González, Paula
  • Macho-Stadler, Inés

Abstract

Internationally, there is wide cross-country heterogeneity in government responses to dual practice in the health sector. This paper provides a uniform theoretical framework to analyze and compare some of the most common regulations. We focus on three interventions: banning dual practice, offering rewarding contracts to public physicians, and limiting dual practice (including both limits to private earnings of dual providers and limits to involvement in private activities). An ancillary objective of the paper is to investigate whether regulations that are optimal for developed countries are adequate for developing countries as well. Our results offer theoretical support for the desirability of different regulations in different economic environments.

Suggested Citation

  • González, Paula & Macho-Stadler, Inés, 2013. "A theoretical approach to dual practice regulations in the health sector," Journal of Health Economics, Elsevier, vol. 32(1), pages 66-87.
  • Handle: RePEc:eee:jhecon:v:32:y:2013:i:1:p:66-87
    DOI: 10.1016/j.jhealeco.2012.08.005
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    References listed on IDEAS

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    1. Garcia-Prado, Ariadna & Gonzalez, Paula, 2007. "Policy and regulatory responses to dual practice in the health sector," Health Policy, Elsevier, vol. 84(2-3), pages 142-152, December.
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    Cited by:

    1. repec:kap:jeczfn:v:123:y:2018:i:1:d:10.1007_s00712-017-0550-8 is not listed on IDEAS
    2. Paula González & Gabriel Montes-Rojas & Sarmistha Pal, 2017. "Dual Practice by Health Workers: Theory and Evidence from Indonesia," Working Papers 17.12, Universidad Pablo de Olavide, Department of Economics.
    3. repec:eee:hepoli:v:121:y:2017:i:5:p:553-557 is not listed on IDEAS
    4. Kuhn, Michael & Nuscheler, Robert, 2013. "Saving the public from the private? Incentives and outcomes in dual practice," ECON WPS - Vienna University of Technology Working Papers in Economic Theory and Policy 02/2013, Vienna University of Technology, Institute for Mathematical Methods in Economics, Research Group Economics (ECON).
    5. Cheng, Terence Chai & Kalb, Guyonne & Scott, Anthony, 2013. "Public, Private or Both? Analysing Factors Influencing the Labour Supply of Medical Specialists," IZA Discussion Papers 7766, Institute for the Study of Labor (IZA).

    More about this item

    Keywords

    I11; I18; L51; H51; Dual practice; Optimal contracts; Physicians’ incentives; Regulations;

    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health

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