Physician Age After Expenses and Before Taxes Assignment Project Essay

Physician Age After Expenses and Before Taxes Assignment Project
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Physician Age After Expenses and Before Taxes Assignment Project

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5.1 The following two tables are mean physician net income by physician age after expenses and before taxes (in thousands of dollars), by year and by specialty.

Table A: Physician Age and Earnings ($ thous.)

 197319741975197719781979198119821983
          
Physician age         
Less than 36 years32.840.643.749.649.064.362.573.377.0
36–45 years51.957.162.969.970.187.598.1100.2110.2
46–55 years55.058.962.367.776.287.1110.8116.5133.6
56–65 years48.349.354.158.765.375.995.699.5103.1
66 or more years31.934.035.036.844.454.968.364.371.9
          

Table B: Physician Specialty and Earnings ($ thousands.)

  Specialty         
            
  All         
  Physicians*GP/FPInt. Med.Surg.Ped.Ob./Gyn.Rad.Psych.Anesth.Path.
            
Physician age           
Less than 36 years77.057.968.0108.844.778.9100.364.9126.990.3
36–45 years110.268.295.1146.381.2118.7150.181.7146.1109.9
46–55 years133.677.8125.4183.881.2139.4161.690.4161.3134.1
56–65 years103.176.498.3120.073.6129.0171.579.0119.8141.3
66 or more years71.950.075.094.859.489.562.1  
            
  1. Based on data reported in these two tables, please compute the present value of a medical education, assuming a 3 percent real discount rate. b. Based on the same data, please compute the internal rate of return on medical education. 5.2 Suppose a country has a total of three cities: city A has a population of 550,000, and cities B and C have populations of 200,000 and 10,000, respectively. Say there are 60 physicians in the country. Assume that per capita demand for medical care is the same in the three cities, and the cities are equally desirable places in which to practice medicine and live. a.

How will the physicians be allocated among the three cities if physicians earnings are to be equalized among the cities? b. Suppose physician supply increased by a third in the country. How would this affect the allocation of physicians among the cities? 5.3 Suppose the country’s national health insurance authority cuts the price it pays physicians for performing a procedure. Use a goods-leisure analysis (goods or income on one axis and leisure on the other) to answer the following questions: a. A backward-bending supply curve of labor can be derived from the indifference curve analysis of goods and leisure. Explain using graphs (one for the indifference curve analysis and the other for the supply of labor function corresponding to the indifference curve analysis).

Physician Age After Expenses and Before Taxes Assignment Project Essay

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