Demand induction with a discrete distribution of patients

Fabbri, Daniele ; Monfardini, Chiara (2001) Demand induction with a discrete distribution of patients. DOI 10.6092/unibo/amsacta/666.
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Abstract

We test the "induced demand" model on cesarean section, relying on a natural experiment of proportional fee reduction of all delivery procedures. This fee change does not imply any substitution effect and allows a proper measure of the income effect. We extend the demand induction model and derive its testable implications by introducing a discrete class of patients towards which physicians can discriminate their inducement behaviour. The empirical test is performed estimating a simultaneous binary probit model in which the probability of c-section delivery depends on the type of hospital chosen and the latter is allowed to be endogenously determined.

Abstract
Document type
Monograph (Working Paper)
Creators
CreatorsAffiliationORCID
Fabbri, Daniele
Monfardini, Chiara
Keywords
Induced demand cesarean section delivery natural experiment simultaneous binary probit model
Subjects
DOI
Deposit date
17 Jun 2004
Last modified
17 Feb 2016 14:00
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