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Under MR, physicians received a per diem and a reduced fee for services provided. We present estimates of a structural discrete choice model that incorporates service intensity (services provided per hour) and contract choice into a labour supply framework. We use our estimates to predict (ex ante) the effects of contracts on physician behaviour and welfare, as measured by average equivalent variations. The supply of services is reduced under an MR contract, suggesting incentives matter. Hours spent seeing patients is less sensitive to incentives than the supply of services. Our results suggest that a reform forcing all physicians to adopt the MR system would have substantially larger effects on physician behaviour than were measured under the observed reform. A pure salary (per diem) reform would sharply reduce services but would increase time spent seeing patients.<\/jats:p>","DOI":"10.1002\/jae.2840","type":"journal-article","created":{"date-parts":[[2021,7,5]],"date-time":"2021-07-05T21:54:05Z","timestamp":1625522045000},"page":"686-702","update-policy":"http:\/\/dx.doi.org\/10.1002\/crossmark_policy","source":"Crossref","is-referenced-by-count":4,"title":["Labour supply, service intensity, and contracts: Theory and evidence on physicians"],"prefix":"10.1002","volume":"36","author":[{"given":"Bernard","family":"Fortin","sequence":"first","affiliation":[{"name":"D\u00e9partement d'\u00e9conomique Universit\u00e9 Laval, CRREP, IZA and CIRANO  Quebec City Canada"}],"role":[{"role":"author","vocabulary":"crossref"}]},{"given":"Nicolas","family":"Jacquemet","sequence":"additional","affiliation":[{"name":"Paris School of Economics and University Paris 1 Panth\u00e9on Sorbonne, Centre d'Economie de la Sorbonne  Paris France"}],"role":[{"role":"author","vocabulary":"crossref"}]},{"given":"Bruce","family":"Shearer","sequence":"additional","affiliation":[{"name":"D\u00e9partement d'\u00e9conomique Universit\u00e9 Laval, CRREP, IZA and CIRANO  Quebec City Canada"}],"role":[{"role":"author","vocabulary":"crossref"}]}],"member":"311","published-online":{"date-parts":[[2021,8,16]]},"reference":[{"key":"e_1_2_9_2_1","doi-asserted-by":"publisher","DOI":"10.1086\/339712"},{"key":"e_1_2_9_3_1","doi-asserted-by":"publisher","DOI":"10.1016\/j.jhealeco.2012.12.002"},{"issue":"5","key":"e_1_2_9_4_1","first-page":"941","article-title":"Uncertainty and the welfare economics of medical care","volume":"53","author":"Arrow K. 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