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More Evidence on the Quality-Quantity Trade-off in Medical Care

Author

Listed:
  • Anca Cotet

    (Department of Economics, Ball State University)

Abstract

This paper investigates the impact of the regulation prohibiting physicians from prescribing drugs without a prior physical examination on health outcomes. This requirement should improve health by reducing illegal access to prescription drugs. On the other hand, it hampers the practice of physician-patient telemedicine, a service evaluated by most previous studies to be of somewhat lower quality but effective in improving access to care. The empirical results suggest that this regulation leads to an increase of approximately 0.2 in the expected monthly number of days lost to illness and 0.4 percent increase in mortality rates the equivalent of 33 more deaths per 1 million people. The magnitude of the impact is larger in rural areas, and in areas with low physician density.

Suggested Citation

  • Anca Cotet, 2009. "More Evidence on the Quality-Quantity Trade-off in Medical Care," Working Papers 200902, Ball State University, Department of Economics, revised Mar 2010.
  • Handle: RePEc:bsu:wpaper:200902
    as

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    File URL: http://econfac.bsu.edu/research/workingpapers/bsuecwp200902r1cotet.pdf
    File Function: Secon version, March 2010
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    References listed on IDEAS

    as
    1. Daniel P. Kessler & Mark McClellan, 1996. "Do Doctors Practice Defensive Medicine?," NBER Working Papers 5466, National Bureau of Economic Research, Inc.
    2. Leffler, Keith B, 1978. "Physician Licensure: Competition and Monopoly in American Medicine," Journal of Law and Economics, University of Chicago Press, vol. 21(1), pages 165-186, April.
    3. Leland, Hayne E, 1979. "Quacks, Lemons, and Licensing: A Theory of Minimum Quality Standards," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1328-1346, December.
    4. Janet Currie & W. Bentley MacLeod, 2008. "First Do No Harm? Tort Reform and Birth Outcomes," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 123(2), pages 795-830.
    5. Daniel Kessler & Mark McClellan, 1996. "Do Doctors Practice Defensive Medicine?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 111(2), pages 353-390.
    6. Grossman, Michael, 2000. "The human capital model," Handbook of Health Economics, in: A. J. Culyer & J. P. Newhouse (ed.), Handbook of Health Economics, edition 1, volume 1, chapter 7, pages 347-408, Elsevier.
    7. Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2004. "How Much Should We Trust Differences-In-Differences Estimates?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(1), pages 249-275.
    8. George A. Akerlof, 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 84(3), pages 488-500.
    Full references (including those not matched with items on IDEAS)

    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. New economy shock! Telemedicine can improve people’s health
      by Nicholas Gruen in Club Troppo on 2009-02-02 12:49:36

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    More about this item

    Keywords

    Telemedicine; Medical Care Quality;

    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law

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