Physicians Treating Physicians: Information and Incentives in Childbirth

摘要: This paper provides new evidence on the interaction between patient information and financial incentives in physician induced demand (PID). Using rich microdata childbirth, we compare treatment of physicians when they are patients with that comparable non-physicians. We exploit a unique institutional feature California to determine how inducement varies obstetricians' incentives. Consistent PID, almost 10 percent less likely receive C-section, only quarter this effect attributable differential sorting hospitals or obstetricians. Financial have large C-section probabilities for non-physicians, but physician-patients relatively unaffected. Physicians also better health outcomes, suggesting overuse C-sections adversely impacts health.