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How to Attract Physicians to Underserved Areas? Policy Recommendations from a Structural Model

Author

Listed:
  • Francisco Costa

    (University of Delaware and FGV EPGE)

  • Letícia Nunes

    (Insper and FGV EPGE)

  • Fabio Miessi Sanches

    (BI Norwegian Business School and Insper)

Abstract

This paper exploits location choices of all generalist physicians who graduated in Brazil between 2001 and 2013 to study policies aimed at increasing the supply of physicians in underserved areas. We set up and estimate a supply and demand model for physicians. We estimate physicians' locational preferences using a random coefficients discrete choice model. The demand has private establishments competing for physicians with private and public facilities around the country. Policy counterfactuals indicate that quotas in medical schools for students born in underserved areas and the opening of vacancies in medical schools in deprived areas are more cost-effective than financial incentives.

Suggested Citation

  • Francisco Costa & Letícia Nunes & Fabio Miessi Sanches, 2024. "How to Attract Physicians to Underserved Areas? Policy Recommendations from a Structural Model," The Review of Economics and Statistics, MIT Press, vol. 106(1), pages 36-52, January.
    • Handle: RePEc:tpr:restat:v:106:y:2024:i:1:p:36-52
    DOI: 10.1162/rest_a_01155
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    Citations

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    Cited by:

    1. Anikó Bíró & Blanka Imre, 2022. "Financial subsidies and the shortage of primary care physicians," KRTK-KTI WORKING PAPERS 2210, Institute of Economics, Centre for Economic and Regional Studies.
    2. Bernard Fortin & Justin Ndoutoumou & Josette Gbeto & Maude Laberge, 2025. "Impact des mesures incitatives et coercitives sur le lieu de pratique des nouveaux médecins de famille," CIRANO Project Reports 2025rp-02, CIRANO.
    3. McNamara, Cici & Pineda-Torres, Mayra, 2025. "Medical residency subsidies and physician shortages," Journal of Public Economics, Elsevier, vol. 251(C).
    4. Natalia Nunes Ferreira‐Batista & Adriano Dutra Teixeira & Maria Dolores Montoya Diaz & Fernando Antonio Slaibe Postali & Rodrigo Moreno‐Serra & James Love‐Koh, 2023. "Is primary health care worth it in the long run? Evidence from Brazil," Health Economics, John Wiley & Sons, Ltd., vol. 32(7), pages 1504-1524, July.
    5. Tamara Bischof & Boris Kaiser, 2021. "Who cares when you close down? The effects of primary care practice closures on patients," Health Economics, John Wiley & Sons, Ltd., vol. 30(9), pages 2004-2025, September.
    6. Mrejen, Matías & Rocha, Rudi, 2025. "Hiring mental health professionals: Evidence from a large-scale policy in Brazil," Labour Economics, Elsevier, vol. 94(C).
    7. Stefan Sliwa Ruiz & Malte Becker & Thomas Hone & Rudi Rocha, 2023. "Doctor Turnover and Health Outcomes: Evidence from the Exit of Cuban Doctors in Brazil," Working Papers 18, Instituto de Estudos para Políticas de Saúde.

    More about this item

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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