Physician Financial Incentives and Cesarean Delivery: New Conclusions from Used Data

17 Pages Posted: 5 May 2008 Last revised: 4 Jan 2011

See all articles by Darren P. Grant

Darren P. Grant

Sam Houston State University - College of Business Administration - Department of Economics and International Business

Date Written: May 5, 2008

Abstract

This paper replicates Gruber, Kim, and Mayzlin's (1999) analysis of the effect of physician financial incentives on cesarean delivery rates, using their data, sample selection criteria, and specification. It cannot replicate the results: there are substantial differences in the sample size, the values of some key independent variables, and the estimated effects. Furthermore, coincident trends help explain their estimated positive relation between fees and cesarean utilization. These data ultimately indicate that a $1000 increase, in current dollars, in the reimbursement for a cesarean section increases cesarean delivery rates by about one percentage point, one-quarter of the effect estimated originally.

Keywords: cesarean delivery, financial incentives

JEL Classification: I11, I18

Suggested Citation

Grant, Darren P., Physician Financial Incentives and Cesarean Delivery: New Conclusions from Used Data (May 5, 2008). Journal of Health Economics, Vol. 28, No. 1, 2009. Available at SSRN: https://ssrn.com/abstract=1129519 or http://dx.doi.org/10.2139/ssrn.1129519

Darren P. Grant (Contact Author)

Sam Houston State University - College of Business Administration - Department of Economics and International Business ( email )

SHSU Box 2118
Huntsville, TX 77341-2118
United States
936-294-4324 (Phone)

HOME PAGE: http://www.shsu.edu/dpg006

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