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Are General Practitioners Good for Endogenous Supply and Health


  • Hugh Gravelle

    (Centre for Health Economics, University of York)

  • Stephen Morris

    (Health Economics Research Group, Brunel University; NPCRDC University of Manchester)

  • Matt Sutton

    (Health Economics Research Unit, University of Aberdeen)


We investigate the impact of area general practitioner (GP) supply on individual health in England. If no allowance is made for the endogeneity of GP supply, the effect is positive but not statistically significant. When GP supply is instrumented by age related capitation the effect is markedly greater and statistically significant. A 10% increase in GP supply leads to an increase in the proportion of the population reporting very good health by 6% from 36%. The estimated cost per quality adjusted life year gained from an additional GP is between £527 and £5740.

Suggested Citation

  • Hugh Gravelle & Stephen Morris & Matt Sutton, 2006. "Are General Practitioners Good for Endogenous Supply and Health," Working Papers 020cherp, Centre for Health Economics, University of York.
  • Handle: RePEc:chy:respap:20cherp

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    References listed on IDEAS

    1. Murphy, Kevin M & Topel, Robert H, 2002. "Estimation and Inference in Two-Step Econometric Models," Journal of Business & Economic Statistics, American Statistical Association, vol. 20(1), pages 88-97, January.
    2. Nancy Devlin & David Parkin, 2004. "Does NICE have a cost-effectiveness threshold and what other factors influence its decisions? A binary choice analysis," Health Economics, John Wiley & Sons, Ltd., vol. 13(5), pages 437-452.
    3. Matthew Sutton, 2002. "Vertical and horizontal aspects of socio-economic inequity in general practitioner contacts in Scotland," Health Economics, John Wiley & Sons, Ltd., vol. 11(6), pages 537-549.
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    Cited by:

    1. Pike, Chris, 2010. "An Empirical Analysis of the Effects of GP Competition," MPRA Paper 27613, University Library of Munich, Germany.

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