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The Demand for Pediatric Care: An Hedonic Approach

  • Fred Goldman
  • Michael Grossman

The model that we develop is used to analyze properties of the demand functions for quantity and quality. It is then applied to study the demand for pediatric care -- physicians' services rendered to children.2The theoretical model of quantity -- quality substitution provides a frame-work for demand analysis whenever the market for a good is distinguished by a quality component. The analysis is developed within the household production framework of consumer behavior and assumes that parents both demand and produce quality children, where children's health is one aspect of their quality. Thus, the demand curves for pediatric care are derived from the interaction between the demand and production functions of children's health. In the analysis, we emphasize the effects of income, the price of pediatric services, and the time costs of obtaining these services on the quantity (measured in terms of visits) and quality of services demanded.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 0134.

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Date of creation: Apr 1979
Date of revision:
Publication status: published as Goldman, Fred and Grossman, Michael. "The Demand for Pediatric Care: An Hedonic Approach." Journal of Political Economy, Vol. 86, No. 2, Part 1, (April 1978), PP. 259-280.
Handle: RePEc:nbr:nberwo:0134
Note: HE
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  1. Goldman, Fred & Grossman, Michael, 1978. "The Demand for Pediatric Care: An Hedonic Approach," Journal of Political Economy, University of Chicago Press, vol. 86(2), pages 259-80, April.
  2. Makoto Ohta & Zvi Griliches, 1976. "Automobile Prices Revisited: Extensions of the Hedonic Hypothesis," NBER Chapters, in: Household Production and Consumption, pages 325-398 National Bureau of Economic Research, Inc.
  3. Cowling, Keith & Rayner, A J, 1970. "Price, Quality, and Market Share," Journal of Political Economy, University of Chicago Press, vol. 78(6), pages 1292-1309, Nov.-Dec..
  4. Becker, Gary S & Lewis, H Gregg, 1973. "On the Interaction between the Quantity and Quality of Children," Journal of Political Economy, University of Chicago Press, vol. 81(2), pages S279-88, Part II, .
  5. Michael Grossman, 1972. "The Demand for Health: A Theoretical and Empirical Investigation," NBER Books, National Bureau of Economic Research, Inc, number gros72-1, July.
  6. Nichols, D & Smolensky, E & Tideman, T N, 1971. "Discrimination by Waiting Time in Merit Goods," American Economic Review, American Economic Association, vol. 61(3), pages 312-23, June.
  7. Robert P. Inman, 1976. "The Family Provision of Children's Health: An Economic Analysis," NBER Chapters, in: The Role of Health Insurance in the Health Services Sector, pages 215-260 National Bureau of Economic Research, Inc.
  8. Robert T. Michael, 1972. "The Effect of Education on Efficiency in Consumption," NBER Books, National Bureau of Economic Research, Inc, number mich72-1, July.
  9. Mahlon R. Straszheim, 1975. "An Econometric Analysis of the Urban Housing Market," NBER Books, National Bureau of Economic Research, Inc, number stra75-1, July.
  10. Steinwald, Bruce & Sloan, Frank A, 1974. "Determinants of Physicians' Fees," The Journal of Business, University of Chicago Press, vol. 47(4), pages 493-511, October.
  11. Acton, Jan Paul, 1975. "Nonmonetary Factors in the Demand for Medical Services: Some Empirical Evidence," Journal of Political Economy, University of Chicago Press, vol. 83(3), pages 595-614, June.
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