Exploring spatial patterns in general practice expenditure

The determinants for per capita general practitioner (GP) public expenditure across Danish municipalities are analysed using data from the period 1997–2004. Heterogeneity and dependency across years are controlled for. Spatial spillover effects across municipalities are investigated in order to disclose the spatial dynamics of public GP expenditure. The results reveal substantial heterogeneity and dependency across time, as well as the presence of a significant spatial spillover effect. The effects of determinants are seriously over-estimated if such features are ignored. The spatial coefficient is strongly significant and suggests that there is an indirect effect on expenditure of non-observable variables that are geographically concentrated.