Date Added: Jul 2010
This paper applies latent-class and multinomial logit models to the choice of hospital for cataract operations in the UK NHS. The authors concentrate on the effects of travel time and waiting time and especially on the waiting time elasticity of demand. Models including hospital fixed effects rely on changes over time in waiting time to identify coefficients. The results show how using latent-class multinomial logit models characterizes the unobserved heterogeneity in GP practices' choice behavior and affects the estimated waiting time elasticity's of demand.