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Rationing The Public Provision Of Healthcare In The Presence Of Private Supplements: Evidence From The Italian Nhs

  • Daniele Fabbri

    ()

  • Chiara Monfardini

    ()

In this paper we assess the relative effectiveness of user charges and administrative waiting times as a tool for rationing public healthcare in Italy. We measure demand elasticities by estimating a simultaneous equation model of GP primary care visits, public specialist consultations and private specialist consultations, as if they were part of an incomplete system of demand. We find that own price elasticity of the demand for public specialist consultation is about -0.3, while administrative waiting time plays a less important role. No substitution exists between the demand for public and private specialists, so that user charges act as a net deterrent for ver-consumption. The public provision of healthcare does not induce the wealthy to opt out. Moreover our evidence suggests that user charges and waiting lists do not serve redistributive purposes.

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Paper provided by CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY in its series CHILD Working Papers with number wp21_06.

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Length: 31 pages
Date of creation: Dec 2006
Date of revision:
Handle: RePEc:wpc:wplist:wp21_06
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