IDEAS home Printed from https://ideas.repec.org/a/uwp/jhriss/v22y1987i4p311-620.html
   My bibliography  Save this article

A Clarification of Theories and Evidence on Supplier-Induced Demand for Physicians' Services

Author

Listed:
  • Miron Stano

Abstract

This article both simplifies and extends the literature on physician-induced demand. It shows that inducement should be expected in all imperfectly competitive markets that are also characterized by incomplete agency relationships. More important, it argues that confusion over the extent of the inducement phenomenon has been created by several contributions that fail to distinguish between the effects of changes in physician-population ratios on changes in the individual physician's output, and the effects on per-capita utilization. In particular, it demonstrates that, by confounding units of analysis, the major empirical results found in recent articles by Rossiter and Wilensky are contradicted by their model. Their evidence, however, together with findings from other studies, are reinterpreted to suggest that physicians are even more constrained, than is generally believed, in being able to induce increases in demand.

Suggested Citation

  • Miron Stano, 1987. "A Clarification of Theories and Evidence on Supplier-Induced Demand for Physicians' Services," Journal of Human Resources, University of Wisconsin Press, vol. 22(4), pages 311-620.
    • Handle: RePEc:uwp:jhriss:v:22:y:1987:i:4:p:311-620
    as

    Download full text from publisher

    File URL: http://www.jstor.org/stable/pdfplus/145706
    Download Restriction: A subscripton is required to access pdf files. Pay per article is available.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nolan, Anne & Nolan, Brian, 2007. "Income, Medical Card Eligibility and Access to GP Services in Ireland," Book Chapters, in: Nolan, Brian (ed.),The Provision and Use of Health Services, Health Inequalities and Health and Social Gain, Economic and Social Research Institute (ESRI).
    2. Gillis, Kurt D. & Lee, David W., 1997. "Medicare, access, and physicians' willingness to accept new Medicare patients," The Quarterly Review of Economics and Finance, Elsevier, vol. 37(3), pages 579-603.
    3. Alice J. Chen & Elizabeth L. Munnich & Stephen T. Parente & Michael R. Richards, 2022. "Do Physicians Warm Up to Higher Medicare Prices? Evidence from Alaska," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 41(2), pages 394-425, March.
    4. Leonel Muinelo & Máximo Rossi & Patricia Triunfo, 2005. "Comportamiento médico: una aplicación a las cesáreas en el Uruguay," Documentos de Trabajo (working papers) 0605, Department of Economics - dECON.
    5. Hensher, Martin & Tisdell, John & Zimitat, Craig, 2017. "“Too much medicine”: Insights and explanations from economic theory and research," Social Science & Medicine, Elsevier, vol. 176(C), pages 77-84.
    6. Fang, Hai & Rizzo, John A., 2009. "Competition and physician-enabled demand: The role of managed care," Journal of Economic Behavior & Organization, Elsevier, vol. 72(1), pages 463-474, October.
    7. De Jaegher, Kris & Jegers, Marc, 2000. "A model of physician behaviour with demand inducement," Journal of Health Economics, Elsevier, vol. 19(2), pages 231-258, March.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:uwp:jhriss:v:22:y:1987:i:4:p:311-620. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: http://jhr.uwpress.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.