Free to Choose? Reform, Choice, and Consideration Sets in the English National Health Service

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Title: Free to Choose? Reform, Choice, and Consideration Sets in the English National Health Service
Author(s): Gaynor, M
Propper, C
Seiler, S
Item Type: Journal Article
Abstract: Choice in public services is controversial. We exploit a reform in the English National Health Service to assess the effect of removing constraints on patient choice. We estimate a demand model that explicitly captures the removal of the choice constraints imposed on patients. We find that, post-removal, patients became more responsive to clinical quality. This led to a modest reduction in mortality and a substantial increase in patient welfare. The elasticity of demand faced by hospitals increased substantially post-reform and we find evidence that hospitals responded to the enhanced incentives by improving quality. This suggests greater choice can raise quality.
Publication Date: 30-Nov-2016
Date of Acceptance: 6-May-2016
ISSN: 0002-8282
Publisher: American Economic Association
Journal / Book Title: American Economic Review
Copyright Statement: This article is under embargo until publication
Sponsor/Funder: Department of Health
Economic & Social Research Council (ESRC)
Funder's Grant Number: PO Number: CMPO057
Keywords: Demand Estimation
Non-price Competition
Health Economics
Patient Choice
Health Care Reform
14 Economics
15 Commerce, Management, Tourism And Services
Publication Status: Accepted
Embargo Date: publication subject to indefinite embargo
Appears in Collections:Imperial College Business School

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