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Effects of spatial density on veterinarian income: where are all of the veterinarians?

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  • Clinton L. Neill
  • Rodney B. Holcomb
  • Kellie Curry Raper
  • Brian E. Whitacre

Abstract

With increased numbers of veterinarians in the market, it is critical to understand how this increased competition affects income potential at multiple levels. This study presents an empirical approach that incorporates local and nonlocalised spatial competition of firms into one model. By analysing the market for veterinarians using a spatial weight matrix approach, we are able to quantify localized and nonlocalised competition which assists in defining relevant market areas for veterinarians. Specifically, increased density within their county and surrounding counties decreases veterinarian income. Thus, the potential market area for veterinarians is larger than the local/county market in which they practice. This is important for veterinarians when choosing a location to practice, as they must consider the competition and demand in local and non-local areas.

Suggested Citation

  • Clinton L. Neill & Rodney B. Holcomb & Kellie Curry Raper & Brian E. Whitacre, 2019. "Effects of spatial density on veterinarian income: where are all of the veterinarians?," Applied Economics, Taylor & Francis Journals, vol. 51(14), pages 1532-1540, March.
    • Handle: RePEc:taf:applec:v:51:y:2019:i:14:p:1532-1540
    DOI: 10.1080/00036846.2018.1527461
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    Cited by:

    1. Neill, Clinton & Zhang, Peilu, . "Payment Plans and Veterinary Services: Do They Reduce the Pain of Pet Owner Payment?," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 49(1).

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