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Physicians' Choices of Specialty, Location, and Mode: A Reexamination within an Interdependent Decision Framework

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  • Jeremiah E. Hurley

Abstract

In this paper, physicians' decisions regarding the specialty, community size, and mode of their first practices are analyzed in a simultaneous decision model using a nested logit specification. Physicians face a choice set consisting of eight specialties, seven community sizes, and three practice settings. Data come from the Longitudinal Survey of the Class of 1960. Income is found to be statistically significant and the average income elasticity is 1.05, which is considerably larger than previous estimates. However, the elasticity estimate is very sensitive to the assumed decision process. A series of policy simulations are then performed to estimate the effect of specified income-based policies on the predicted distribution of physicians across specialties, community sizes, and modes.

Suggested Citation

  • Jeremiah E. Hurley, 1991. "Physicians' Choices of Specialty, Location, and Mode: A Reexamination within an Interdependent Decision Framework," Journal of Human Resources, University of Wisconsin Press, vol. 26(1), pages 47-71.
  • Handle: RePEc:uwp:jhriss:v:26:y:1991:i:1:p:47-71
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    Cited by:

    1. Steven Stern & Elizabeth Merwin & Emily Hauenstein & Ivora Hinton & Virgina Rovnyak & Melvin Wilson & Ishan Williams & Irma Mahone, 2008. "The E¤ect of Rurality on Mental and Physical Health," Virginia Economics Online Papers 381, University of Virginia, Department of Economics.
    2. Robert Gagné & Pierre Thomas Léger, 2005. "Determinants of physicians' decisions to specialize," Health Economics, John Wiley & Sons, Ltd., vol. 14(7), pages 721-735.
    3. Sivey, Peter & Scott, Anthony & Witt, Julia & Joyce, Catherine & Humphreys, John, 2012. "Junior doctors’ preferences for specialty choice," Journal of Health Economics, Elsevier, vol. 31(6), pages 813-823.
    4. Kuhn, Michael & Ochsen, Carsten, 2009. "Demographic and geographic determinants of regional physician supply," Thuenen-Series of Applied Economic Theory 105, University of Rostock, Institute of Economics.
    5. George M. Holmes, "undated". "The Long Term Effect of the National Health Service Corps," Working Papers 0104, East Carolina University, Department of Economics.
    6. Beomsoo Kim, 2007. "The Impact of Malpractice Risk on the Use of Obstetrics Procedures," The Journal of Legal Studies, University of Chicago Press, vol. 36(S2), pages 79-119, June.
    7. Holmes, George M., 2005. "Increasing physician supply in medically underserved areas," Labour Economics, Elsevier, vol. 12(5), pages 697-725, October.

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