Does Regulation Affect Economic Outcomes?: The Case of Dentistry

40 Pages Posted: 16 Aug 2000 Last revised: 15 Jan 2022

See all articles by Morris M. Kleiner

Morris M. Kleiner

Humphrey School of Public Affairs; National Bureau of Economic Research (NBER)

Robert T. Kudrle

University of Minnesota, Twin Cities

Multiple version iconThere are 3 versions of this paper

Date Written: January 1997

Abstract

This study examines the role of variations in occupational licensing policies and practices in improving the outputs of services provided to consumers, and the effect of restrictive regulations on the prices of certain services. Theory suggests that more restrictive licensing may raise prices, but that it may also raise demand by reducing uncertainty about the competency of the services. This paper uses unique data on the dental health of incoming Air Force personnel to empirically analyze the effects of varying licensing stringency among the states. We find that tougher licensing does not lead to improved outputs, but does raise prices. Our results cast doubt on the principal public interest argument in favor of the impact of more strenuous licensing practices of the more restrictive states.

Suggested Citation

Kleiner, Morris M. and Kudrle, Robert T., Does Regulation Affect Economic Outcomes?: The Case of Dentistry (January 1997). NBER Working Paper No. w5869, Available at SSRN: https://ssrn.com/abstract=225653

Morris M. Kleiner (Contact Author)

Humphrey School of Public Affairs ( email )

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United States
612-625-2089 (Phone)

National Bureau of Economic Research (NBER) ( email )

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Cambridge, MA 02138
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Robert T. Kudrle

University of Minnesota, Twin Cities ( email )

420 Delaware St. SE
Minneapolis, MN 55455
United States

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