Competition and Physician Induced Demand: Evidence from Dental Service Market in Japan
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چکیده
It is one of controversial issues in health economics whether the severer competition among physicians causes the higher medical fee because of the physician-induced demand or it causes decline of the fee because of the competition. We focus on the dental service market in Japan and examine the relation between the dentist-to-population ratio and dentistry fee using the fixed-effects model including dynamic fixed-effects mode and instrumental variable method. We employ two instruments of geographic variation, one being the number of colleges of dentistry and teaching hospitals within the 30km-radius circle from the areal center of a city and the other the distance to the nearest college or teaching hospital. We find that the severity of competition causes the decline of the dentistry fee or at least never cause higher dentistry fee.
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تاریخ انتشار 2006