TY - JOUR AU - Kleiner,Morris M. AU - Kudrle,Robert T. TI - Does Regulation Affect Economic Outcomes?: The Case of Dentistry JF - National Bureau of Economic Research Working Paper Series VL - No. 5869 PY - 1997 Y2 - January 1997 UR - http://www.nber.org/papers/w5869 L1 - http://www.nber.org/papers/w5869.pdf N1 - Author contact info: Morris M. Kleiner University of Minnesota Humphrey Institute of Public Affairs 260 Humphrey Center 301 19th Street South Minneapolis, MN 55455 Tel: 612/625-2089 Fax: 612/625-6351 E-Mail: kleiner@umn.edu M2 - featured in NBER digest on 1997-10-01 AB - This study examines the role of variations in occupational licensing policies and practices in improving the outputs of services provided to consumers, and the effect of restrictive regulations on the prices of certain services. Theory suggests that more restrictive licensing may raise prices, but that it may also raise demand by reducing uncertainty about the competency of the services. This paper uses unique data on the dental health of incoming Air Force personnel to empirically analyze the effects of varying licensing stringency among the states. We find that tougher licensing does not lead to improved outputs, but does raise prices. Our results cast doubt on the principal public interest argument in favor of the impact of more strenuous licensing practices of the more restrictive states. ER -