Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/159255
Authors: 
Fabbri, Daniele
Monfardini, Chiara
Year of Publication: 
2001
Series/Report no.: 
Quaderni - Working Paper DSE 414
Abstract: 
We test the "induced demand" model on cesarean section, relying on a natural experiment of proportional fee reduction of all delivery procedures. This fee change does not imply any substitution effect and allows a proper measure of the income effect. We extend the demand induction model and derive its testable implications by introducing a discrete class of patients towards which physicians can discriminate their inducement behaviour. The empirical test is performed estimating a simultaneous binary probit model in which the probability of c-section delivery depends on the type of hospital chosen and the latter is allowed to be endogenously determined.
Persistent Identifier of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by-nc/3.0/
Document Type: 
Working Paper

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