Economic Rents Derived from Hospital Privileges in the Market for Podiatric Services
32 Pages Posted: 4 Jan 2007 Last revised: 19 Jul 2010
Date Written: April 1987
This study examines the relative impacts of human capital and market conditions on the economic rents associated with hospital privileges in the market for footcare. An empirical model of hospital privileges for podiatrists is formulated based on the Pauly-Redisch model of hospital behavior. The privilege model is then incorporated into a model of podiatrists' earnings via a selection adjustment as proposed by Heckman and Lee. The results indicate the persistence of economic rents even after controlling for unobserved "quality" factors.
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