More Evidence on the Quality-Quantity Trade-off in Medical Care
This paper investigates the impact of the regulation prohibiting physicians from prescribing drugs without a prior physical examination on health outcomes. This requirement should improve health by reducing illegal access to prescription drugs. On the other hand, it hampers the practice of physician-patient telemedicine, a service evaluated by most previous studies to be of somewhat lower quality but effective in improving access to care. The empirical results suggest that this regulation leads to an increase of approximately 0.2 in the expected monthly number of days lost to illness and 0.4 percent increase in mortality rates the equivalent of 33 more deaths per 1 million people. The magnitude of the impact is larger in rural areas, and in areas with low physician density.
|Date of creation:||Feb 2009|
|Date of revision:||Mar 2010|
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- George A. Akerlof, 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, Oxford University Press, vol. 84(3), pages 488-500.
- Daniel Kessler & Mark McClellan, 1996. "Do Doctors Practice Defensive Medicine?," The Quarterly Journal of Economics, Oxford University Press, vol. 111(2), pages 353-390.
- Grossman, Michael, 2000. "The human capital model," Handbook of Health Economics, in: A. J. Culyer & J. P. Newhouse (ed.), Handbook of Health Economics, edition 1, volume 1, chapter 7, pages 347-408 Elsevier.
- Leland, Hayne E, 1979. "Quacks, Lemons, and Licensing: A Theory of Minimum Quality Standards," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1328-46, December.
- Janet Currie & W. Bentley MacLeod, 2008.
"First Do No Harm? Tort Reform and Birth Outcomes,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 123(2), pages 795-830.
- Leffler, Keith B, 1978. "Physician Licensure: Competition and Monopoly in American Medicine," Journal of Law and Economics, University of Chicago Press, vol. 21(1), pages 165-86, April.
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