Free to Choose? Reform, Choice, and Consideration Sets in the English National Health Service

Martin Gaynor, Carol Propper and Stephan Seiler

American Economic Review, 2016, vol. 106, issue 11, 3521-57

Abstract: Choice in public services is controversial. We exploit a reform in the English National Health Service to assess the effect of removing constraints on patient choice. We estimate a demand model that explicitly captures the removal of the choice constraints imposed on patients. We find that, post-removal, patients became more responsive to clinical quality. This led to a modest reduction in mortality and a substantial increase in patient welfare. The elasticity of demand faced by hospitals increased substantially post-reform and we find evidence that hospitals responded to the enhanced incentives by improving quality. This suggests greater choice can raise quality.

JEL-codes: D12 H51 I11 I18 (search for similar items in EconPapers)
Date: 2016
Note: DOI: 10.1257/aer.20121532
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Citations: View citations in EconPapers (105)

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