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The Effect of Incentive Policies on the Practice Location of Doctors: A Multinomial Probit Analysis

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  • Bolduc, Denis
  • Fortin, Bernard
  • Fournier, Marc-Andre

Abstract

In this article, the authors estimate a spatial autoregressive multinomial probit model of the choice of location by general practitioners for establishing their initial practice. This model allows them to account for potential interdependencies among location choices. The model is used to assess the effect of various incentive measures introduced in Quebec to influence the geographical distribution of physicians across eighteen regions. The authors' data set covers subperiods before and after the introduction of these measures. Incentive policies are captured through price and income effects. The authors' results provide evidence that these measures had a significant effect on location choices. Copyright 1996 by University of Chicago Press.

Suggested Citation

  • Bolduc, Denis & Fortin, Bernard & Fournier, Marc-Andre, 1996. "The Effect of Incentive Policies on the Practice Location of Doctors: A Multinomial Probit Analysis," Journal of Labor Economics, University of Chicago Press, vol. 14(4), pages 703-732, October.
    • Handle: RePEc:ucp:jlabec:v:14:y:1996:i:4:p:703-32
    DOI: 10.1086/209828
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