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On the Dynamics of Physician Density; Theory and Empirical Evidence for Switzerland

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  • Sandra Nocera
  • Gabrielle Wanzenried

Abstract

This paper analyzes the geographical distribution of physicians across the 26 cantons of Switzerland from 1960 to 1998. We use a dynamic location model to explain physicians' choice for their practices by considering market characteristics and medical infrastructure. Our panel data analysis indicates that physicians avoid areas where physician density has reached a certain level. Also, specialists' services may sometimes be substituted for those provided by general practitioners. These results do not support the common reproach that the unequal geographic distribution of physicians necessarily reflects market failure. Finally, as physician densities converge over time, a more equal distribution in the cantons results.

Suggested Citation

  • Sandra Nocera & Gabrielle Wanzenried, 2002. "On the Dynamics of Physician Density; Theory and Empirical Evidence for Switzerland," Diskussionsschriften dp0208, Universitaet Bern, Departement Volkswirtschaft.
    • Handle: RePEc:ube:dpvwib:dp0208
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    References listed on IDEAS

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    More about this item

    Keywords

    physician density; market failure; health policy; convergence analysis; panel data;
    All these keywords.

    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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