@TechReport{iza:izadps:dp9229,
            	author={Salm, Martin and Wübker, Ansgar},
            	title={Do Hospitals Respond to Increasing Prices by Supplying Fewer Services?},
            	year={2015},
	month={Jul},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={9229},
            	url={https://www.iza.org/index.php/publications/dp9229},
	abstract={Medical providers often have a significant influence on treatment decisions which they can use in their own financial interest. Classical models of supplier-induced demand predict that medical providers will supply fewer services if they face increasing prices. We test this prediction based on a reform of hospital financing in Germany. Uniquely, this reform changed the overall level of reimbursement – with increasing prices for some hospitals and decreasing prices for others – without affecting the relative prices for different types of patients. Based on administrative data, we find that hospitals do indeed react to increasing prices by reducing service supply.},
	keywords={physician-induced demand;hospital care;prospective payment},
            }