Are the physicians who own these clinics and hospitals making more dough than they would practicing in the U.S. or Europe? Or is that you just can't get good Indian food there? Maybe a paucity of elephants? I assume it's the first since you believe deeply in the market and wouldn't blog this article if it was inconsistent with the market model. But if so it implies that a bunch of people are making less money than they would doing their thing in the U.S. medical system. You waiting for them to head here soon? Prices to go up in India? Or ...?
no, my post doesn't necessarily imply Indian doctors are earning less or more than US doctors. It could be that Indian doctors are more efficient than US doctors and, hence, even while charging a lower price, they're making the same or more dough as US doctors. If we assume that all doctors have the same cost function, your point might hold. But this depends on magnitude of the output US doctors loss to Indian doctors. Theory would predict US doctors to respond by cutting their prices and so on, until the equilibrium market price reflects cost. This process increases consumer welfare and reduces deadweight loss. You got a problem with that, pal?
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Are the physicians who own these clinics and hospitals making more dough than they would practicing in the U.S. or Europe? Or is that you just can't get good Indian food there? Maybe a paucity of elephants? I assume it's the first since you believe deeply in the market and wouldn't blog this article if it was inconsistent with the market model. But if so it implies that a bunch of people are making less money than they would doing their thing in the U.S. medical system. You waiting for them to head here soon? Prices to go up in India? Or ...?
no, my post doesn't necessarily imply Indian doctors are earning less or more than US doctors. It could be that Indian doctors are more efficient than US doctors and, hence, even while charging a lower price, they're making the same or more dough as US doctors. If we assume that all doctors have the same cost function, your point might hold. But this depends on magnitude of the output US doctors loss to Indian doctors. Theory would predict US doctors to respond by cutting their prices and so on, until the equilibrium market price reflects cost. This process increases consumer welfare and reduces deadweight loss. You got a problem with that, pal?
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