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Yan Feng
''A developed theoretical model of paid and unpaid work in healthcare supply.''
( 2012, Vol. 32 No.4 )
We investigate how the increase in the rate of performance related payment affects the healthcare supply in paid and unpaid work. The developed theoretical model shows that a higher price incentivises the supply of paid work. Its impact on unpaid work is determined by the trade-off between crowding effect, effects of the increased opportunity costs and available income. This note provides one of the first attempts in health economics to incorporate the crowding effect and opportunity costs of supply unpaid work into health providers' utility functions and to consider the effect of a change in income within this theoretical framework.
Keywords: unpaid work; financial incentives; crowding effect; time allocation
JEL: I1 - Health: General
H4 - Publicly Provided Goods: General
Manuscript Received : Sep 27 2012 Manuscript Accepted : Nov 07 2012

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