Physician-induced demand: an empirical analysis of the consumer information gap

The hypothesis of physician-induced demand is examined empirically in a model where variation in consumer information affects health-care utilization. A theoretical framework is posited under which demand-inducing physicians will provide more services, ceteris paribus, to their medically uninformed patients. Using data from the CHAS-NORC National Survey of Access to Medical uninformed patients. Using data from the CHAS-NORC National Survey of Access to Medical Care 1975-1976, physician office visit demand equations are estimated. The key finding is that medical professionals and their families are as likely, if not more likely, to visit physicians as other people, controlling for sociodemographic factors, price factors, access to care factors and perceived health status.