ENTRY BARRIERS AND MEDICAL BOARD FUNDING AUTONOMY

In this paper we develop and test the hypothesis that institutional fu nding arrangments affect the extent to which public agencies are influ enced by special interests, We test this hypothesis using data on stat e medical boards. In 1989, medical boards in twenty-one states receive d budget appropriations from their legislatures. The remaining boards operated independent of legislative control, financing their activitie s from fees and other revenues. We find that budgetary autonomy does i nfluence agency decisions. The ability of physicians to restrict entry is enhanced where licensing boards are self-financed.