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Physician response to fee changes: using inheritance as a quasi-natural experiment

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We used data on inheritance received by Norwegian primary care physicians and their spouses to study how wealth affects the amount of medical treatment provided by fee-for-service physicians. The effect of wealth on the number of consultations, and the amount of treatment provided during consultations, was small. Our results suggest that the income effect of fee changes on service provision of fee-for-service physicians is moderate, implying that fee regulation is an effective means of controlling spending on primary care physician services.

Document Type: Research Article


Affiliations: 1: Department of Economics, Norwegian University of Science and Technology, NO-7491 Trondheim, Norway,Department of Health Economics, Rokkansenteret, NO-5015 Bergen, Norway 2: Dental Faculty, Community Dentistry, University of Oslo, NO-0316 Oslo, Norway

Publication date: June 1, 2011

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