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Physician Density in a Two-Tiered Health Care System

  • Gächter, Martin

    ()

    (Department of Economics and Statistics, University of Innsbruck)

  • Schwazer, Peter

    ()

    (Department of Economics and Statistics, University of Innsbruck)

  • Theurl, Engelbert

    ()

    (Department of Economics and Statistics, University of Innsbruck)

  • Winner, Hannes

    ()

    (University of Salzburg)

We investigate the density of private physicians in a two-tiered health care system, i.e., one with co-existing public and private health care providers. In particular, we analyze how the densities of private and public suppliers of outpatient health care (general practitioners and specialists) are related to each other. Using a panel of 121 Austrian districts between 2002 and 2008, we find that the density of private specialists is positively associated with the density of private general practitioners, but negatively related to the density of public general practitioners. We also observe a negative relationship between the densities of private and public general practitioners and the ones of private and public specialists, indicating competitive forces between the private and the public sector of the outpatient health care provision in Austria.

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Paper provided by University of Salzburg in its series Working Papers in Economics and Finance with number 2011-5.

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Length: 24 pages
Date of creation: 31 Mar 2011
Date of revision:
Handle: RePEc:ris:sbgwpe:2011_005
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  1. Baumgardner, James R, 1988. "Physicians' Services and the Division of Labor across Local Markets," Journal of Political Economy, University of Chicago Press, vol. 96(5), pages 948-82, October.
  2. Theurl, Engelbert & Winner, Hannes, 2010. "The male-female gap in physician earnings: Evidence from a public health insurance system," Working Papers in Economics and Finance 2010-15, University of Salzburg.
  3. Davidson, Russell & MacKinnon, James G., 1993. "Estimation and Inference in Econometrics," OUP Catalogue, Oxford University Press, number 9780195060119, March.
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  8. Jiang, H. Joanna & Begun, James W., 2002. "Dynamics of change in local physician supply: an ecological perspective," Social Science & Medicine, Elsevier, vol. 54(10), pages 1525-1541, May.
  9. Noether, Monica, 1986. "The Growing Supply of Physicians: Has the Market Become More Competitive?," Journal of Labor Economics, University of Chicago Press, vol. 4(4), pages 503-37, October.
  10. Joseph P. Newhouse & Albert P. Williams & Bruce W. Bennett & William B. Schwartz, 1982. "Does the Geographical Distribution of Physicians Reflect Market Failure?," Bell Journal of Economics, The RAND Corporation, vol. 13(2), pages 493-505, Autumn.
  11. Atella, Vincenzo & Deb, Partha, 2008. "Are primary care physicians, public and private sector specialists substitutes or complements? Evidence from a simultaneous equations model for count data," Journal of Health Economics, Elsevier, vol. 27(3), pages 770-785, May.
  12. Bresnahan, Timothy F & Reiss, Peter C, 1991. "Entry and Competition in Concentrated Markets," Journal of Political Economy, University of Chicago Press, vol. 99(5), pages 977-1009, October.
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  14. Jean Marie Abraham & Martin Gaynor & William B. Vogt, 2007. "ENTRY AND COMPETITION IN LOCAL HOSPITAL MARKETS -super-* ," Journal of Industrial Economics, Wiley Blackwell, vol. 55(2), pages 265-288, 06.
  15. Kristiansen, Ivar Sønbø & Førde, Olav Helge, 1992. "Medical specialists' choice of location: The role of geographical attachment in Norway," Social Science & Medicine, Elsevier, vol. 34(1), pages 57-62, January.
  16. Bresnahan, Timothy F & Reiss, Peter C, 1990. "Entry in Monopoly Markets," Review of Economic Studies, Wiley Blackwell, vol. 57(4), pages 531-53, October.
  17. Amemiya, Takeshi & MaCurdy, Thomas E, 1986. "Instrumental-Variable Estimation of an Error-Components Model," Econometrica, Econometric Society, vol. 54(4), pages 869-80, July.
  18. Propper, Carol, 2000. "The demand for private health care in the UK," Journal of Health Economics, Elsevier, vol. 19(6), pages 855-876, November.
  19. Capps, Cory & Dranove, David & Lindrooth, Richard C., 2010. "Hospital closure and economic efficiency," Journal of Health Economics, Elsevier, vol. 29(1), pages 87-109, January.
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