2016
DOI: 10.1257/aer.20121532
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Free to Choose? Reform, Choice, and Consideration Sets in the English National Health Service

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 substantial… Show more

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Cited by 153 publications
(125 citation statements)
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“…Our analysis also relates to the literature investigating whether quality affects patient choice of hospital (e.g. Gaynor et al (2016) for coronary bypass, Gutacker et al (2016) and Beckert et al (2012) for hip replacement). Although quality is a key explanatory variable in models of choice of hospital and is the dependent variable in models of the effect of competition on quality, the literatures are complementary since competition can only affect quality if choice of hospital is affected by quality.…”
Section: Previous Literaturementioning
confidence: 99%
See 1 more Smart Citation
“…Our analysis also relates to the literature investigating whether quality affects patient choice of hospital (e.g. Gaynor et al (2016) for coronary bypass, Gutacker et al (2016) and Beckert et al (2012) for hip replacement). Although quality is a key explanatory variable in models of choice of hospital and is the dependent variable in models of the effect of competition on quality, the literatures are complementary since competition can only affect quality if choice of hospital is affected by quality.…”
Section: Previous Literaturementioning
confidence: 99%
“…Since 2007, the NHS Choices website has provided public information on services and quality of providers. These policies led to changes in demand patterns and increased hospital elasticity of demand with respect to quality (Gaynor et al, 2016;Moscelli et al 2016b).…”
Section: Institutional Backgroundmentioning
confidence: 99%
“…This includes the models in Goeree (2008), Gaynor, Propper, and Seiler (2016) and Manzini and Mariotti (2014). Under this 'Alternative-Specific Consideration' (ASC) approach, consideration set probabilities take the form:…”
Section: Identificationmentioning
confidence: 99%
“…The quality of care can have large, and long-lasting, effects on the health of the consumer. Injecting greater competition into heavily regulated healthcare markets is a popular reform model in many jurisdictions (Gaynor et al 2016;Glied and Altman 2017;OECD 2012). But this takes place against the backdrop of a long-term trend of provider consolidation in healthcare markets (Gaynor and Town 2012;Fulton 2017).…”
Section: Introductionmentioning
confidence: 99%