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Journal of Political Economy Vol. 96 No. 5 1988

Physicians' Services and the Division of Labor Across Local Markets

James R. Baumgardner

Abstract

This paper reports empirical evidence of systematic cross-locale variation in the degree of division of labor among physicians. A theoretical model--based on an individual producer's trade-off between increasing returns and falling marginal revenue within each activity--motivates the empirical tests. At two levels of aggregation, specialization is correlated with local demand shifters for medical services. At the individual level, I find systematic differences in the range of procedures performed within a specialty class. General practitioners working fewer hours, practicing in more populated counties, or practicing in countries with more elderly produce a narrower range of procedures.

DOI
10.1086/261571
Volume
96
Issue
5
Pages
948-982
Language
en
Sources
openalex crossref

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