Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/298501 
Year of Publication: 
2023
Series/Report no.: 
Department of Economic Policy Working Paper Series No. 26
Publisher: 
University of Economics in Bratislava, Department of Economic Policy, Bratislava
Abstract: 
Usually, health policy makers face a trade-off between benefits and costs from healthcare markets regulation and deregulation. We argue that these markets and policy reforms should not be studied in isolation as the effects from regulation in one market spillover to other markets. In particular, we study entry decisions and strategic interactions between general practitioners, pediatricians, and pharmacies. We show that a better regulation and accessibility of one profession allow policy makers to relax spatial restrictions and regulations of other healthcare professionals. We document that these spillover effects could be sizeable as the entry thresholds for pharmacies to enter the market decrease by 70 % with the presence of a general practitioner. Our counterfactual analysis suggests that a better coverage of GPs would improve spatial accessibility of pharmaceutical services and lead to an entry of new pharmacies in currently unattractive markets, mostly in rural areas.
Subjects: 
entry model
strategic interactions
health economics
industrial economics
regulation
pharmacies
JEL: 
D22
I11
L22
Document Type: 
Working Paper

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