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Regional Development in Advanced Countries: a Within-Country Application of the Human Development Index for Austria

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Schrott L., Gächter M., Theurl E.
DANUBE: Law and Economics Review
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2015
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vol. 6
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issue 1
1-23
EN
Since its implementation in 1990, the human development index (HDI), the flagship indicator of multidimensional development, has attracted a great deal of attention and critics in academic, political and media circles. It initiated a new stage in the discussion of appropriate indicators to measure socioeconomic development. Until now, the vast majority of empirical work using the HDI concept has taken a cross-country perspective. The main aim of this paper is the application of the HDI at the sub-country level in small, highly developed and socioeconomically homogenous countries. For this undertaking we use a slightly modified version of the HDI, called the regional development index (RDI). For the components of the RDI - life expectancy, education and standard of living - we use recent cross section information for Austria at the level of districts. There exists considerable heterogeneity across districts in the RDI and its components. Our Theil-decomposition reveals that the overwhelming part of the observed heterogeneity is based on differences within provinces (96 percent), although the differences in life expectancy between the provinces explain a substantial part of the overall heterogeneity in this indicator (54 percent).
2

ENTRY INTO THE PHYSICIANS’ MARKET: EMPIRICAL EVIDENCE FROM THE OUTPATIENT SECTOR IN AUSTRIA

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Gächter M., Schwazer P., Theurl E.
DANUBE: Law and Economics Review
|
2013
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vol. 4
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issue 4
245-260
EN
In forming strategies to improve the macro performance of health care systems, effective interaction between the public and private service provisions is considered an important aspect of institutional design. Recent economic research has provided valuable insights into the significance of this interaction. We study the market entry decisions of private physicians in the outpatient health care sector inAustria by applying an entry=exit model at two different spatial levels of aggregation and using data from the time period 2002-2008. By estimating a Poisson panel data model with community=district fixed effects, we find a significantly negative effect of existing physician capacities in a specialty, both in the public and private sectors, on the entry of new private physicians. On the contrary, we find a significantly positive effect of existing private general practitioners on the entry of private specialists. These findings indicate that private physicians tend to (i) compensate for regional differences in public outpatient capacities, and (ii) establish cooperative networks where they collaborate with other private physicians in the local market.
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