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Office Triage and the Physician's Supply Curve

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  • Bradford, W David
  • Martin, Robert E

Abstract

This paper contains a theoretical and empirical model of the physician firm. The utility maximizing physician chooses the number of hours of labor to supply and the mix between patient visits and time per visit. Theory suggests that a serious specification error may occur if one estimates the labor supply curve and patient demand curve without simultaneously estimating the mix between patient visits and time per visit. A Chi-Square specification test reveals that this "triage" model statistically dominates the simple supply/demand model. Estimation results indicate relevant backward-bending labor and negatively sloped service supply functions.

Suggested Citation

  • Bradford, W David & Martin, Robert E, 1995. "Office Triage and the Physician's Supply Curve," Empirical Economics, Springer, vol. 20(2), pages 303-323.
  • Handle: RePEc:spr:empeco:v:20:y:1995:i:2:p:303-23
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    Cited by:

    1. Marvasti, Akbar, 2014. "An estimation of the demand and supply for physician services using a panel data," Economic Modelling, Elsevier, vol. 43(C), pages 279-286.
    2. W. Bradford & Robert Martin, 2000. "Partnerships, Profit Sharing, and Quality Competition in the Medical Profession," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 17(2), pages 193-208, September.

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