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

Author

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  • David Madden

    (School of Economics, University College Dublin)

Abstract

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.

Suggested Citation

  • David Madden, 2007. "Doctors' Fees in Ireland Following the Change in Reimbursement: Did they Jump?," The Economic and Social Review, Economic and Social Studies, vol. 38(2), pages 259-274.
  • Handle: RePEc:eso:journl:v:38:y:2007:i:2:p:259-274
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    File URL: http://www.esr.ie/Vol38_2/05ESRIVol38.pdf
    File Function: First version, 2007
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    References listed on IDEAS

    as
    1. Jushan Bai & Pierre Perron, 1998. "Estimating and Testing Linear Models with Multiple Structural Changes," Econometrica, Econometric Society, vol. 66(1), pages 47-78, January.
    2. David Madden & Anne Nolan & Brian Nolan, 2005. "GP reimbursement and visiting behaviour in Ireland," Health Economics, John Wiley & Sons, Ltd., vol. 14(10), pages 1047-1060.
    3. 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.
    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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    Cited by:

    1. Anne Nolan, 2007. "A dynamic analysis of GP visiting in Ireland: 1995-2001," Health Economics, John Wiley & Sons, Ltd., vol. 16(2), pages 129-143.

    More about this item

    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection

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