Does Regulation Affect Economic Outcomes? the Case of Dentistry
Year: 2000
Type: article
Study design: Observational Study
Abstract: This study examines the role of variations in occupational licensing policies in improving the quality of services provided to consumers and the effect of restrictive regulations on the prices of certain services and on the earnings of practitioners. Theory suggests that more restrictive licensing may raise prices and at the same time raise demand by reducing uncertainty about the quality of the services. This article uses unique data on the dental health of incoming Air Force personnel to analyze empirically the effects of varying licensing stringency among the states. It finds that tougher licensing does not improve outcomes, but it does raise prices for consumers and the earnings of practitioners. These results cast doubt on the principal public interest argument in favor of more stringent state licensing practices.
Source: The Journal of Law and Economics
DOI: 10.1086/467465
Authors: Morris M. Kleiner, Robert T. Kudrle
Institutions: University of Minnesota, National Bureau of Economic Research
Language: English
Subfield: Law
Field: Social Sciences
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W3123743264