Surgical supplier induced demand : an economic analysis of Caesarean section, Cholecystectomy, Tonsillectomy and Adenoidectomy, and Appendectomy in Australia, 1979 to 1983

Donald, Bruce Fraser. (1985). Surgical supplier induced demand : an economic analysis of Caesarean section, Cholecystectomy, Tonsillectomy and Adenoidectomy, and Appendectomy in Australia, 1979 to 1983 Honours Thesis, School of Economics, The University of Queensland.

       
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Author Donald, Bruce Fraser.
Thesis Title Surgical supplier induced demand : an economic analysis of Caesarean section, Cholecystectomy, Tonsillectomy and Adenoidectomy, and Appendectomy in Australia, 1979 to 1983
School, Centre or Institute School of Economics
Institution The University of Queensland
Publication date 1985
Thesis type Honours Thesis
Total pages 135
Language eng
Subjects 14 Economics
Formatted abstract
This study examines whether it is possible to reject any of the competing economic theories of the medical care market on the basis of observed Australian data. The neoclassical theory, as amended to account for insurance and waiting times associated with seeking medical care, is contrasted with supplier-induced demand hypothesis(SIDH). The SIDH suggests that medical consumers, in rational recognition of their comparative informational disadvantage, give physicians control over their resource allocation decisions. The SIDH suggests that one influence upon these decisions made my physicians is their own self interest. Thus physicians can induce demand to an appropriate level to achieve a desirable work leisure trade off. A review of the literature finds that past tests of SIDH have been played by the identification problem. The present study examines the effect upon the quantity of caesarean sections, cholecystectomies, appendectomies, appendiceal drainage, and tonsillectomies and adenoidectomies per 10,000 health insured population, of a number of variables such as net price, incomes ,time costs, physician stocks per capita, physicians income tax rates and the percentages of the population with health insurance. Higher income taxes on physicians are found to cause supplier induced demand, although physicians per capote is not. Prices are rarely significant, but income per capita has a significant positive effect for all operations. The results are interpreted as being closer to allowing a rejection of the neoclassical theory than the SIDH, although caution is required with the pooled cross-section time series data.

Document type: Thesis
Collection: UQ Theses (non-RHD) - UQ staff and students only
 
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