Does Regulation Affect Economic Outcomes?: The Case of Dentistry
This study examines the role of variations in occupational licensing policies and practices in improving the outputs of services provided to consumers, and the effect of restrictive regulations on the prices of certain services. Theory suggests that more restrictive licensing may raise prices, but that it may also raise demand by reducing uncertainty about the competency of the services. This paper uses unique data on the dental health of incoming Air Force personnel to empirically analyze the effects of varying licensing stringency among the states. We find that tougher licensing does not lead to improved outputs, but does raise prices. Our results cast doubt on the principal public interest argument in favor of the impact of more strenuous licensing practices of the more restrictive states.
|Date of creation:||Jan 1997|
|Publication status:||published as Kleiner, Morris M. and Robert T. Kudrle. "Does Regulation Affect Economic Outcomes? The Case Of Dentistry," Journal of Law and Economics, 2000, v43(2,Oct),548-582.|
|Contact details of provider:|| Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.|
Web page: http://www.nber.org
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Morris M. Kleiner & Robert T. Kudrle, 1992. "Do Tougher Licensing Provisions Limit Occupational Entry? The Case of Dentistry," NBER Working Papers 3984, National Bureau of Economic Research, Inc.
- Neal, Derek A & Johnson, William R, 1996.
"The Role of Premarket Factors in Black-White Wage Differences,"
Journal of Political Economy,
University of Chicago Press, vol. 104(5), pages 869-895, October.
- Derek A. Neal & William R. Johnson, 1995. "The Role of Pre-Market Factors in Black-White Wage Differences," NBER Working Papers 5124, National Bureau of Economic Research, Inc.
- Carl Shapiro, 1986. "Investment, Moral Hazard, and Occupational Licensing," Review of Economic Studies, Oxford University Press, vol. 53(5), pages 843-862.
- Shepard, Lawrence, 1978. "Licensing Restrictions and the Cost of Dental Care," Journal of Law and Economics, University of Chicago Press, vol. 21(1), pages 187-201, April.
- Milton Friedman & Simon Kuznets, 1954. "Income from Independent Professional Practice," NBER Books, National Bureau of Economic Research, Inc, number frie54-1, April.
- Maurizi, Alex, 1974. "Occupational Licensing and the Public Interest," Journal of Political Economy, University of Chicago Press, vol. 82(2), pages 399-413, Part I, M.
- Freeman, Richard B & Kleiner, Morris M, 1990. "The Impact of New Unionization on Wages and Working Conditions," Journal of Labor Economics, University of Chicago Press, vol. 8(1), pages 8-25, January.
- Freeman, Richard Barry & Kleiner, Morris M., 1990. "The Impact of New Unionization on Wages and Working Conditions," Scholarly Articles 4632238, Harvard University Department of Economics.