The Effect of Incentive Policies on the Practice Location of Doctors: A Multinomial Probit Analysis

In this article we estimate a spatial autoregressive multinomial probit model of the choice of location by general practitioners for establishing their initial practice. This model allows us to account for potential interdependencies among location choices. The model is used to assess the effect of various incentive measures introduced in Québec (Canada) to influence the geographical distribution of physicians across 18 regions. Our data set covers subperiods before and after the introduction of these measures. Incentive policies are captured through price and income effects. Our results provide evidence that these measures had a significant effect on location choices.