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The Review of Economics and Statistics Vol. 106 No. 1 2024

How to Attract Physicians to Underserved Areas? Policy Recommendations from a Structural Model

Francisco Costa1; Letícia Nunes2; Fábio Sanches3

1 University of Delaware and FGV EPGE · 2 Insper and FGV EPGE · 3 BI Norwegian Business School and Insper

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Abstract

This paper exploits location choices of all generalist physicians who graduated in Brazil between 2001 and 2013 to study policies aimed at increasing the supply of physicians in underserved areas. We set up and estimate a supply and demand model for physicians. We estimate physicians' locational preferences using a random coefficients discrete choice model. The demand has private establishments competing for physicians with private and public facilities around the country. Policy counterfactuals indicate that quotas in medical schools for students born in underserved areas and the opening of vacancies in medical schools in deprived areas are more cost-effective than financial incentives.

DOI
10.1162/rest_a_01155
Volume
106
Issue
1
Pages
36-52
Language
en
Sources
bibtex:phds-export.bib openalex crossref

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