By Arnold Kling
Physician licensing is one of those issues where economics and ordinary intuition conflict. Most people believe that licensing serves to protect consumers from incompetent doctors. Economists worry that licensing is a form of supply restriction and rent-seeking. EconJournalWatch, a publication recommended by Alex Tabarrok, looks at the economics literature on the topic.
many economists view licensing as a significant barrier to effective, cost efficient health care. State licensing arrangements have limited innovations in physician education and practice patterns of health professionals…
Consumers would benefit from a regulatory environment in which health care provider organizations and hospitals are free to employ health manpower in flexible ways and medical training is offered in a variety of forms.
For Discussion. Could the same be said for the Ph.D “license” and the tenure “license” in economics?