The demand for physician services. Evidence from a natural experiment.
This study exploits a natural experiment in Belgium to estimate the effect of copayment increases on the demand for physician services. It shows how a differences-in-differences (DD) estimator of the price effects can be decomposed into effects induced by the common average proportional price increase (income effects) and by the change in relative prices (substitution effects). The price elasticity of a uniform proportional price increase is relatively small (-0.13 for men and -0.03 for women). Substitution effects are large, especially for women, but imprecisely estimated. Despite the substantial price increases, the efficiency gain of the reform, if any, is modest.
Cockx
Bart
B
Department of Economics, Place Montesquieu 3, B1348, Louvain-la-Neuve, Belgium. cockx@ires.ucl.ac.be
Brasseur
Carine
C
D000328:Adult; D001294:Attitude to Health; D001530:Belgium; D017047:Cost Sharing / Q000331:legislation & jurisprudence*; D004470:Economics, Medical; D017598:Efficiency, Organizational / Q000191:economics / Q000706:statistics & numerical data; D005194:Family Practice / Q000191:economics* / Q000706:statistics & numerical data; D006301:Health Services Needs and Demand / Q000191:economics* / Q000639:trends; D006302:Health Services Research; D006792:House Calls / Q000191:economics / Q000706:statistics & numerical data*; D006801:Humans; D008511:Medicine / Q000706:statistics & numerical data; D008875:Middle Aged; D017059:Models, Econometric; D009313:National Health Programs / Q000191:economics* / Q000331:legislation & jurisprudence; D009819:Office Visits / Q000191:economics / Q000706:statistics & numerical data*; D016016:Proportional Hazards Models; D013038:Specialization