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Doctors' Fees in Ireland Following the Change in Reimbursement: Did they Jump?

  • David Madden

    (School of Economics, University College Dublin)

This paper analyses the pure time-series properties of doctors’ fees in Ireland to assess whether a structural change in the series is observed at the time of the change in reimbursement in 1989. Such a break would be consistent with doctors responding to the reimbursement change in a manner predicted by supplier-induced-demand behaviour and would provide indirect evidence that such inducement had taken place. Structural change is assessed on the basis of CUSUM and CUSUMSQ tests. The data is also analysed for the presence of unusually influential observations. In neither case are the results consistent with a break around the time of the introduction of the change.

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File URL: http://www.esr.ie/Vol38_2/05ESRIVol38.pdf
File Function: First version, 2007
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Article provided by Economic and Social Studies in its journal Economic and Social Review.

Volume (Year): 38 (2007)
Issue (Month): 2 ()
Pages: 259-274

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Handle: RePEc:eso:journl:v:38:y:2007:i:2:p:259-274
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  1. Jushan Bai & Pierre Perron, 2003. "Computation and analysis of multiple structural change models," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 18(1), pages 1-22.
  2. Madden, David & Nolan, Anne & Nolan, Brian, 2004. "GP Reimbursement and Visiting Behaviour in Ireland," Papers HRBWP09, Economic and Social Research Institute (ESRI).
  3. Perron, P. & Bai, J., 1995. "Estimating and Testing Linear Models with Multiple Structural Changes," Cahiers de recherche 9552, Universite de Montreal, Departement de sciences economiques.
  4. Pierre Perron, 2005. "Dealing with Structural Breaks," Boston University - Department of Economics - Working Papers Series WP2005-017, Boston University - Department of Economics.
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