Determinants Study Essay

IntroductionTo Be on non to Be, that is the principal, a noted quote from Shakespeargon poem Hamlet. My niece is interested in ensueing health check crop and has solicited my tradeal opinion on whether it would be economical feasible for her to attend medical examination checkup schooltime and if so, the best location to practice medicine. There ar many variables in determining the maximum benefit and/or advantages of medical school. Such variables could include only not limited to, gender, ethnicity, tuition, locations, schools, specialties, etc. This root volition touch on the advantages as well as nearly barriers which may countersuit some of the advantages to form a concise recommendation to my niece on whether fixmly a physician is economicall(a)y and socially a trusty profession in which she should pursue. Demand DeterminantsThe demand determinants for this case entrust have got definition of the securities industry and the availability of tight substitu tes. These two determinants were chosen because the merchandise for medical school can pose many qu4estions, however, narrowing shine the near compatible choice is essential in ascertaining the value of congruous a physician. The hold Is universe a Doctor Worth it financial? Not as much as you may Think, give attention us break down the demand determinant of availability of close substitutes. This article goes to analyze the antecedents question on whether if it is charge becoming a physician. To determine the authors answer, she compared the salary of a set up to whizz of an average college grade. In real numbers, not to arrangethat these numbers are of current market value, but for the sake of this paper, the author states that a graduate can earn an in add up of $40,000.00, minus afterward-tax deduction this graduate volitioning take home $30,000.00 a year. A resident after medical school and for the next three years can counter to make about $40,000.00 a year . However, after the three years, a have-to doe with can expect to make $150,000.00 a year as a family practitioner, which after taxes (approximately 33%), a take home pay yearly for a family practitioner sophisticate is $100,000.00.To amortize the speak to of medical school and the amount of ones yearly income, it is predicted that to find the financial bring in of a physician oppose to psyche who received a four-year degree, a person will have to wait 13 years to chit-chat the financial advantage of going to medical school after all variables have been computed. In relative to years, a college graduate without medical school will graduate at the age of 22, however, one will not see financial relief until the age of 35 if continued on to a medical degree. To end this assumption of is becoming a doctor is financially feasible, the answer will be yes, however, the return will be much farther in ones heraldic bearinger. But do take into account that a doctor will have to buil d much harder and longer hours, approximately 60 plus hours a week oppose to someone who generally will work between 35-40 hours a week. The maintenance of a doctor is continuing medical didactics to stupefy abreast of the latest and most up-to-date technology, inventions, and advancements. If a physician get hold of a specialty (which in my opinion is highly recommended), one will have to recertify for board exams every 7 -10 years. Lastly, retirement age which is typically 65 years old will not be building block the age of around 75 for a physician. Job security, however, will be in a doctors favor because the shortage as of right not for doctors, especially for primeval care physicians will agree a doctor employed. This aspect explains the demand determinant of the definition of the market.The market in this text is saying the specialty of a primary care physician is in high demand. The author of the article calculated a $600,000 gain to be a doctor oppose to another profe ssion which only involveed a four-year degree. Moreover, the price elasticity for becoming a doctor as this article relates is that to determine the value of a physicians income/net gain oppose to a four-year degree income is dependent upon(p) upon ones specialty. The demand for a physician will make up as the shortage for doctors decrease to help carefor the take ons of Americans growing population whom is also living longer. The locations, especially folksy areas will demand the need for more than physicians. The need for a primary care physician is greater than the need for a family practitioner. To perform the nerve centre formula, the following fictional number will exhibit the value of becoming a physician. Midpoint elasticity = (B2-B1)/(B2+B1)/2 (A2-A1)/(A2+A1)/2 the number we will use the amount of patients needed for a physician. The average number from the setoff and the ending number of patients needing a physician in a farming(prenominal) area is 75 or (50+100) /2, so if the number of patients increases, the formula will read (100-50)/50 will give us 50/50, or 100%. However, if the patients decrease the formula will read (50-100)/100 which will be -50/100, or -50%. The midpoint value will be (100-50)/75 or 50/75 which will equal to a part change of 66.67%.Supply DeterminantsBecoming a doctor while analyzing the tack on demands of the profession can be determine by the price the enter prices, technology and the expectations. The price can be determined by the cost of medical school. According to the article Medical School at $278,000 subject matter Even Bernanke tidings Has Debt, published by Bloomberg, the average debt of a medical learner who finances his or her education through with(predicate) private and disposal loans is between $207,868 and $278,455. However, the article also states that the supply of doctors will be little than the demand due to a shortage that is forecast to happen by 2025. This makes the supply inelastic because we will face more patients in need of a physician than we have physicians. The shortage is reportedly more than 130,000 physicians to the more than 32 million American that will be receiving healthcare (Bloomberg, 2014). This display case of debt can price out minorities and women who have interests in pursuing the opinion of attending medical school. Such and enormous debt can discourage someone to think elsewhere as far as becoming a doctor. African Americans typically leave medical school owing loans on the average of $184,125. However, the price of medical school or even a lucrative salary cannot be the sole determinant of why one strikes the profession of a doctor. A study, coming from the article African American Female mendeleviums in South Caroline Role Models and Career Satisfaction, describe results from 132 AfricanAmerican pistillate physicians with 62 responding answering why they choose to practice medicine.The majority of the respondent stated they went t o medical school for unselfish reasons, in addition to having a high interest in the commanding degree challenges and opportunities practicing medicine presence. Another reason the respondents gave in the survey stated that thither were other external reasons that influenced their decisions and that was the impact their family, teachers and childhood upbringings. Moreover, the study also revealed that most African American women shared the same desires as white female physicians. Lastly the study stated that the dissatisfying component of the respondents dislikes of being a doctor was managed care, time demands and paper work. (McFarland, F., Smith, J., West, A., & Rhoades, R., 2000). In essence, ones gender and/or ethnicity one will have to analyze the declared cost of what it takes to obtain a medical degree. One must incorporate the tuition, room & board, books, matter-of-fact exams, etc., whereas the implicit cost will be calculating the interest evaluate of government and private loans. However, becoming a physician even with student loan debt, one can apply the scheme of profit maximisation because the return over time will far exceed the debt that was incurred. This theory also allows a medical student to actualize that there will be a normal profit as well as an economic profit because one would have covered the implicit and explicit cost to obtain the accounting profit, but will reach far above monetary return to achieve the economic profit in one case the loans have been repaid. As stated earlier, over a period of time, a physician will make approximately $600,000 over the course of his or her career than a four-year graduate. The below graph is illustrating the supply of physicians to the number of patients that need care.RecommendationIn conclusion, my advice to my niece would be to follow her heart and desire as obtaining a medical degree will far exceed the enjoyment of serving people than the income and time spent. However, to quantify t he return on the education of a medical degree, will yield a positive return, but not immediately, over time. Through the law of demand she will see that becoming a doctor is in high demand because the American population is living longer and physicians are needed to care for the generations to comeand the ones that are still here who need geriatric care. Another positive component in obtaining a medical degree is because she is a cleaning woman she can be a pioneer of new cures and advancements as it cerebrate to terminal illnesses. The concerning questions is what are the best places to practice medicine? According to PR Newswire, The Best Places to Practice Medicine are Idaho, Alabama, Texas, Nevada, and South Carolina. The metrics that were employ in determining which place is best were low density of practicing physicians per capita, medical malpractice insurance, low rate disciplinary actions, cost of living and tax burden. However, the article also stated that physicians m ust determine what is most important to them and their family in deciding where to practice medicine. To be or not to be is the question yes becoming a physician is economically sound and wise because through the theory of supply and demand, physicians will be needed through timelessness as long as there is human presence on this planet earth.ReferencesLorin, J. (2013). Bloomberg. Medical School at $278,000 Means Even Bernanke Son Has Debt. Retrieved from http//www.bloomberg.com/news/2013-04-11/medical-school-at-278-000-means-even-bernanke-son-carries-debt.html Chen, M., & Chevalier, J. A. (2012). Are Women Over investing in Education? demonstration from the Medical Profession. Journal Of Human Capital, 6(2), 124-149. Miqueo, C. (1999). Women and doctors in medicine. Lancet, 354SIV65. Dacre, J., & Shepherd, S. (2010). Women and medicine. Clinical Medicine, 10(6), 544-547. Illinois State University. incision of Economics. Profit Maximinzation. Retrieved from http//www.economics.il linoisstate.edu McFarland, F., Smith, J., West, A., & Rhoades, R. (2000). African American female physicians in South Carolina occasion models and career satisfaction. Southern Medical Journal, 93(10), 982-985. Medical School Success (N.D.) Is Being a Doctor Worth It Financially? Not as a good deal as You May Think http//www.medicalschoolsuccess.com/is-being-a-doctor-worth-it-financially/ PR, N. (2012, October 12). The Best Places to Practice Medicine are Idaho, Alabama, Texas, Nevada, and South Carolina. PR Newswire US. R. Glenn Hubbard, Anthony Patrick OBrien, Hubbard, OBrien. Economics. 4th Edition. 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