Working Paper: NBER ID: w2207
Authors: Richard C. Frank; Jonathan P. Weiner; Donald M. Steinwachs; David S. Salkever
Abstract: This study examines the relative impacts of human capital and market conditions on the economic rents associated with hospital privileges in the market for footcare. An empirical model of hospital privileges for podiatrists is formulated based on the Pauly-Redisch model of hospital behavior. The privilege model is then incorporated into a model of podiatrists' earnings via a selection adjustment as proposed by Heckman and Lee. The results indicate the persistence of economic rents even after controlling for unobserved "quality" factors.
Keywords: hospital privileges; podiatric services; economic rents; human capital; market conditions
JEL Codes: I11; I18
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Obtaining full medical privileges (I11) | Higher earnings (J31) |
| Board certification (J44) | Higher earnings for podiatrists without privileges (J44) |
| Board certification (J44) | Higher earnings for podiatrists with full privileges (J39) |
| Ratio of orthopedists to population (I11) | Likelihood of obtaining privileges (P14) |
| Presence of podiatry training programs (I23) | Probability of obtaining privileges (D72) |