Free to choose? Reform, choice, and consideration sets in the english national health service: Reform, Choice and Consideration Sets in the English National Health Service

Martin Gaynor, Carol Propper, Stephan Seiler

Research output: Contribution to journalArticle (Academic Journal)peer-review

38 Citations (Scopus)
427 Downloads (Pure)

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.
Original languageEnglish
Pages (from-to)3521-3557
Number of pages37
JournalAmerican Economic Review
Volume106
Issue number11
DOIs
Publication statusPublished - 1 Nov 2016

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