Working Paper: NBER ID: w1514
Authors: Richard G. Frank
Abstract: Puzzling results of a positive association between the number of physicians per capita and the level of fees for physician services have been reported in the literature. These results may be due to misspecification of econometric models and use of data aggre-gated across medical specialties. It is hypothesized that the unusual results would not persist with a carefully specified econometric model for a single medical specialty. A general model of pricing and location of physician's services is applied to the market for psychiatrist's services. The results imply that the market for psychiatrist's services operates in a manner consistent with the predictions of the competitive model.
Keywords: mental health; physician services; econometric models
JEL Codes: I11; I18
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| psychiatrist-to-population ratio (I11) | fees for psychiatrist services (I11) |
| fees for general practitioners (I11) | demand for psychiatrists (I11) |
| psychiatrist-to-population ratio (I11) | quantity of services supplied (L89) |
| insurance coverage (G52) | demand for psychiatrist services (I11) |