Celebrating humanity's flourishing through the spread of capitalism and the rule of law
31 Jul 2014 Leave a comment
in applied welfare economics, health economics Tags: agent principal problems, asymmetric information, moral hazard, Physician Induced Demand
Rehavi and Johnson compare obstetricians’ choice of C-section during childbirth when the expectant mother is herself a medical doctor to when she is not. From their abstract:
… Consistent with PID [Physician Induced Demand], physicians are almost 10 per cent less likely to receive a C-section, with only a quarter of this effect attributable to differential sorting of patients to hospitals or obstetricians.
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