Volume 16, Number 3 (Summer) 1981
Auster, Richard D., and Ronald L. Oaxaca. 1981. "Identification of Supplier Induced Demand in the Health Care Sector" Journal of Human Resources 16(3):327-342.
This paper explores the issues and pitfalls encountered when attempting to test empirically the hypothesis that physician, hospital, or any other input supply level induces increasing demand for health services in the strict sense of demand shift and, through that, increased demand for the input in question. Evidence is presented which suggests that an empirical test of the supplier induced demand (SID) hypothesis of the type traditionally performed may not in fact be feasible with cross-sectional aggregate data such as is usually used.
* We wish to acknowledge the helpful comments of Ronald Ehrenberg, Franklin Fisher, Herb Klarman, Charles Phelps, and the editor. We also wish to thank Ted James for his research assistance. Any remaining errors are solely the responsibility of the authors.
© 2003 by the Board of Regents of the University of Wisconsin System
US ISSN 0022-166X