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The effects of stochastic demand and expense preference behaviour on public hospital costs and excess capacity
Health Economics, 06/06/08

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Free Abstract

Lovell CAK et al. - Overcapitalization in hospitals can be explained by hospitals providing insurance demand when faced with demand uncertainty. Evidence of expense preference behaviour was also found. It is concluded that both stochastic demand and expense preference behaviour should be taken into account when analysing hospital costs and production.

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