EconPapers    
Economics at your fingertips  
 

Does monetary punishment crowd out pro-social motivation? The case of hospital bed-blocking

Tor Helge Holmås (), Egil Kjerstad (), Hilde Lurås () and Odd Rune Straume ()
Additional contact information
Tor Helge Holmås: Health Economics Bergen (HEB), University of Bergen
Egil Kjerstad: Institute for Research in Economics and Business Administration (SNF) and Health Economics Bergen (HEB), http://www.snf.no
Hilde Lurås: Helse Øst Health Services Research Centre, Akershus University Hospital, Norway.

No 17/2008, NIPE Working Papers from NIPE - Universidade do Minho

Abstract: We study whether the use of explicit monetary incentives might be counter-productive. In particular, we focus on the effect of fining owners of long-term care institutions who prolong length of stay at hospitals. We outline a simple theoretical model, based on motivational crowding theory, deriving the conditions for explicit monetary incentives to have potentially counterproductive effects. In the empirical part, we exploit a natural experiment involving changes in the catchments areas of two large Norwegian hospitals. We find that bed-blocking is reduced when transferring long-term care providers from a hospital using monetary fines to prevent bed-blocking to a hospital not relying on this incentive scheme, and vice versa. We interpret these results as examples of monetary incentives crowding out agents’ intrinsic motivation, leading to a reduction in effort.

Keywords: Motivation crowding; Intrinsic motivation; Monetary punishment; Hospital bed blocking (search for similar items in EconPapers)
JEL-codes: D64 I18 Z13 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cbe and nep-exp
Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed

Downloads: (external link)
http://www3.eeg.uminho.pt/economia/nipe/docs/2008/NIPE_WP_17_2008.PDF (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nip:nipewp:17/2008

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in NIPE Working Papers from NIPE - Universidade do Minho Núcleo de Investigação em Políticas Económicas, Escola de Economia e Gestão, Universidade do Minho, P-4710-057 Braga, Portugal. Contact information at EDIRC.
Bibliographic data for series maintained by Maria João Thompson ().

 
Page updated 2019-07-21
Handle: RePEc:nip:nipewp:17/2008