AN ECONOMETRIC MODEL OF THE DEMAND FOR, SUPPLY OF, AND THE DISTRIBUTION OF DENTISTS IN NEBRASKA

Some economists have argued that either conventional economics does not apply to the health professions or standard economic theory must be modified in making such an application. The purpose of this study was to investigate whether or not the structure of dental care in Nebraska is a result of market forces. Since great variation exists in the distribution of dentists among geographic regions in Nebraska, this work attempted to identify those counties where dentists are in short supply and to suggest some policies to alleviate the lack of dental manpower in those areas. In Chapter II current literature pertaining to the demand, supply and distribution of dentists was reviewed. In Chapter III market structure for the delivery of dental services was analyzed. In order to determine the role of market forces in the distribution of dentists, an econometric model was formulated which can identify the determinants of the distribution, the demand for, and the supply of, dentists\u27 services for the state. For several reasons, the quantity of dental procedures performed in each market was used as a measure of quantity of dental services. This was a more desirable measure than gross billings and patient visits. The price index for a set of standard procedures (initial examination, bitewing film, prophylaxis) were included in the demand and supply functions. In Chapter IV the results of the simultaneous-equation model of the demand for, and the supply of, dental services and the distribution of dentists were presented. In the demand function six variables were tested and only the personal income in the county was significant. In the supply function two variables were tested and it was found that the dentists/population ratio is the most significant factor in this equation. Finally, four variables were tested in the distribution function and only the personal income in the county was significant. The ordinary least squares estimates of all structural equations were also compared with the three-stage least squares estimation technique. It was found that all equations were fairly stable to the change in estimation techniques. Finally, Chapter V presented the conclusions and possible policy recommendations