Paying informally in the Albanian health care sector: A two-tiered stochastic frontier bargaining model

Tomini, Sonila, Groot, Wim and Pavlova, Milena (2009). Paying informally in the Albanian health care sector: A two-tiered stochastic frontier bargaining model.

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  • Author Tomini, Sonila
    Groot, Wim
    Pavlova, Milena
    Title Paying informally in the Albanian health care sector: A two-tiered stochastic frontier bargaining model
    Publication Date 2009
    Abstract This paper looks at informal payments in the health care sector in Albania and the bargaining power of patients and medical staff. We develop a two-tiered stochastic frontier model to measure the effect of bargaining power of medical staff and patients on the extent of informal payments. We use data from the Albania Living Standards Measurement Survey 2005 and calculate patients�۪ maximum willingness to pay and medical staff�۪ expected payments for both outpatient and inpatient visits. The results show that medical staff have consistently more bargaining power than patients, while patients and medical staff bargain more in outpatient than in inpatient care. Higher education, difficulty to pay for health care, and location of hospital increase the bargaining power of patients, while type of illness and location of hospital increase the bargaining power of medical staff. Keywords: Informal payments, bargaining, stochastic model, out-of-pocket payments JEL Codes: I11, I19, D82
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    Created: Fri, 13 Dec 2013, 12:13:34 JST