The discussion about health care systems focuses on the dynamics of expenditures and on the weak growth of revenues. In this discussion, it is widely overseen that medical expenditures and the supply of medical services depend crucially on the compensation of physician services. The paper...

The production of health does not only depend on the medical services supplied by the physician but is also influenced by the patient's compliance. A model of medical treatment is presented in which both the actions of physician and patient are modeled as a productive input. The analysis...