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Time prices and the demand for GP services

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  • Janssen, Richard

Abstract

This paper analyzes the effects of time prices on the demand for general practitioner (GP) services. Where data on earnings per unit of time was not available, an alternative method was used to impute the value of time. Separate elasticities were estimated using interactive dummy variables for individual employment status. Furthermore, a distinction was made between patient-initiated and physician-initiated visits to a GP. The results show that the probability of a patient-initiated visit is negatively influenced by the time required, for 4 of the 6 employment status categories defined. For a subsample, time was valued on the basis of earnings per time unit. The resulting time price was found to have a significant negative impact on the probability of a patient-initiated visit to a GP. However neither time nor time prices have any effect on the probability of a physician-initiated visit. It can therefore be concluded that time prices are a relevant factor in the determination of demand for GP services, particularly if it is the patient who is making the decision. Ignoring time prices could result in the mis-specification of demand equations, obtaining biased results from statistical analyses and wrongly assessing policy implications.

Suggested Citation

  • Janssen, Richard, 1992. "Time prices and the demand for GP services," Social Science & Medicine, Elsevier, vol. 34(7), pages 725-733, April.
    • Handle: RePEc:eee:socmed:v:34:y:1992:i:7:p:725-733
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    Cited by:

    1. Dickey, H. & Ikenwilo, D. & Norwood, P. & Watson, V. & Zangelidis, A., 2016. "“Doctor my eyes”: A natural experiment on the demand for eye care services," Social Science & Medicine, Elsevier, vol. 150(C), pages 117-127.
    2. De Luca, Giuliana & Ponzo, Michela, 2009. "Primary care utilisation and workers’ opportunity costs. Evidence from Italy," MPRA Paper 24201, University Library of Munich, Germany.
    3. De Luca, Giuliana & Ponzo, Michela, 2009. "Access to primary care and workers’ opportunity costs. Evidence from Italy," MPRA Paper 15479, University Library of Munich, Germany.
    4. Kim, Jiyun & Ko, Sukyoung & Yang, Bongmin, 2005. "The effects of patient cost sharing on ambulatory utilization in South Korea," Health Policy, Elsevier, vol. 72(3), pages 293-300, June.
    5. Lise Rochaix & Stéphane Jacobzone, 1997. "L'hypothèse de demande induite : un bilan économique," Économie et Prévision, Programme National Persée, vol. 129(3), pages 25-36.
    6. Dalton, Christina M., 2014. "Estimating demand elasticities using nonlinear pricing," International Journal of Industrial Organization, Elsevier, vol. 37(C), pages 178-191.
    7. Óscar D. Lourenço & Pedro L. Ferreira, 2005. "Utilization of public health centres in Portugal: effect of time costs and other determinants. Finite mixture models applied to truncated samples," Health Economics, John Wiley & Sons, Ltd., vol. 14(9), pages 939-953, September.
    8. Su Liu & Deborah Chollet, "undated". "Price and Income Elasticity of the Demand for Health Insurance and Health Care Services: A Critical Review of the Literature," Mathematica Policy Research Reports dbf03ba11863430593b0b825f, Mathematica Policy Research.
    9. D. J. Torgerson & C. Donaldson & D. M. Reid, 1994. "Private versus social opportunity cost of time: Valuing time in the demand for health care," Health Economics, John Wiley & Sons, Ltd., vol. 3(3), pages 149-155, May.

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