Arbeitspapier

Are doctors better health ministers?

Appointing or electing professionals to be public officials is a double-edged sword. Experts can use their rich knowledge to implement reforms, but they can also favor their own profession. In this study, we compare physician-trained state health ministers to ministers of other professions in Germany during 1955-2017. German state health ministers have great power to determine hospital capacities and infrastructure. Our results show that physiciantrained health ministers increase hospital capacities, capital, and funding by the statutory health insurance (SHI). This prompts hospitals to hire more physicians, but with little impact on hospital outputs. As a result, total factor productivity (TFP) growth in hospital care slows down substantially under physician-ministers. At the same time, job satisfaction of hospital doctors tends to increase. We conclude that, in particular, the medical profession benefits from medical doctors in office.

Language
Englisch

Bibliographic citation
Series: ifo Working Paper ; No. 328

Classification
Wirtschaft
Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
Analysis of Health Care Markets
Health: Government Policy; Regulation; Public Health
Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
Capitalist Systems: Political Economy
Subject
hospitals
health minister
productivity
TFP
favoritism
profession
technocracy

Event
Geistige Schöpfung
(who)
Pilny, Adam
Rösel, Felix
Event
Veröffentlichung
(who)
ifo Institute - Leibniz Institute for Economic Research at the University of Munich
(where)
Munich
(when)
2020

Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Pilny, Adam
  • Rösel, Felix
  • ifo Institute - Leibniz Institute for Economic Research at the University of Munich

Time of origin

  • 2020

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