Behavior and Social Issues, 24, 56-67 (2015). © Marshall Medoff. Readers of this article may copy it without the copyright owner’s permission, if the author and publisher are acknowledged in the copy and the copy is used for educational, not-for-profit purposes. doi: 10.5210/bsi.v.24i0.5635 THE IMPACT OF STATE ABORTION POLICY ON THE PRICE OF AN ABORTION Marshall Medoff1 California State University, Long Beach ABSTRACT: This study empirically examines whether restrictive state abortion laws increase the price charged by abortion providers as a result of complying with the laws. The empirical results found that, over the period 2000-2011, state enforcement of a two-visit law and a TRAP law are associated with an increase in the real price charged by abortion providers of 19% for a two-visit law and 25% for a TRAP law. These empirical results suggest that these two restrictive state abortion laws reduce the demand for an abortion in a state by between 13% and 15% for a twovisit law and between 17% and 19% for a TRAP law. KEYWORDS: abortion, state abortion policy, restrictive abortion laws To date, there have been no studies that have examined the relationship between restrictive state abortion laws and the price charged by abortion providers. This paper addresses the gap in the literature by empirically examining two important public and social policy questions: Do restrictive state abortion laws increase the price charged by abortion providers? And, if so, Does the increase in the price charged by abortion providers, as a result of complying with the restrictive state abortion laws, have a significant negative impact on abortion demand (i.e., reduce abortion demand)? The U.S. Supreme Court’s 1973 Roe v. Wade decision gave women the constitutional right to have an abortion, but it did not mandate the provision of abortion services. States were permitted to enact and enforce various laws restricting the accessibility of abortion services provided that the restrictive abortion laws had a compelling interest in protecting a pregnant woman’s maternal health. In 1992, the Supreme Court in Planned Parenthood of Southeastern Pennsylvania v. Casey expanded states’ ability to impose restrictions on a woman’s access to an abortion provided that the restrictions did not impose an undue burden on a woman’s ability to obtain an abortion. According to the Supreme Court, a state law or regulation imposes an undue burden if it has “… the purpose or effect of placing a substantial obstacle in the path of a woman seeking an abortion of a nonviable fetus.” The ambiguity of the undue burden standard resulted in an expansion of state laws and regulations that were intended to reduce a woman’s access to an abortion. Virtually all the research on abortion has focused on whether various restrictive state abortion laws alter women’s unwanted pregnancy resolution decision-making reducing abortion demand (i.e., the demand-side of the market). Restrictive abortion laws may have a direct effect 1 The author may be contacted at: [email protected] 56 IMPACT OF STATE ABORTION POLICY decreasing the likelihood of women terminating an unwanted pregnancy in two ways. First, restrictive abortion laws may increase the pecuniary costs (e.g., expenses on travel and accommodations, lost work time, childcare expenses) and the nonpecuniary emotional costs (e.g., guilt, remorse, regret, humiliation, psychological trauma) incurred by women seeking an abortion. Second, restrictive abortion laws may decrease the availability of abortion services by reducing the number of abortion providers resulting in both an increase in women’s search costs in locating an abortion provider and the time costs associated with obtaining an abortion. The more restrictive the abortion law, the greater the cost of obtaining an abortion. If abortions become more costly, women with unwanted pregnancies will have fewer abortions. Besides having a direct negative effect on abortion demand, restrictive state abortion laws may also have an indirect negative effect on abortion demand. Previous research has found that women with unwanted pregnancies are relatively sensitive to increases in the price of an abortion. An increase in the price of an abortion by 10% has been found to reduce a state’s abortion ratio (the number of abortions per 1000 pregnancies) by 7% to 8% (Medoff, 1988; Garbacz, 1990). Restrictive abortion laws may have an indirect negative effect on abortion demand by causing an increase in the price charged by abortion providers because of the additional costs they incur in order to comply with the laws. This higher abortion price, in turn, may make it more costly (less affordable) to obtain an abortion, thereby pricing some women out of the abortion market (i.e., reduce abortion demand). Whether restrictive state abortion laws increase the price charged by abortion providers is an empirical question of obvious interest to policymakers and researchers. If restrictive state abortion laws increase the price charged by abortion providers, this would imply that prior numerical estimates of a negative relationship between particular restrictive abortion laws and state abortion rates were underestimated since they excluded the positive effect of the laws on the abortion price (Gohmann & Ohsfeldt, 1993; Blank et al., 1996; Levine et al., 1996; Matthews et al., 1997; Medoff, 1997, 2007, 2010). This paper, using state-level data for the years 2000, 2005, 2008 and 2011, empirically examines the relationship between restrictive state abortion laws and the price charged by abortion providers. Restrictive State Abortion Laws There are six restrictive abortion laws enacted by states that the Supreme Court has found to be constitutional. (1) Medicaid is a jointly funded federal-state health insurance program that provides medical services for low-income individuals in each state. In 1980, the Supreme Court ruled that a law passed by Congress, prohibiting federal Medicaid funds from being used to pay for an abortion and gave states the right to deny state funding of abortions, was constitutional. Many states then enacted laws that prohibited the use of their public funds to pay for Medicaid abortions for lowincome women. However, some states continued to use their own funds to pay for Medicaid abortions. State Medicaid funding of abortions is obviously not a restrictive abortion law since, by providing coverage for abortion services, states are in effect increasing access to the utilization of abortion services because cost is no longer a consideration for women who are too poor to pay for the procedure. However, Dennis and Blanchard (2013) found that providers of Medicaid abortions had considerable expenses obtaining state reimbursement including slow payment, telephone and mailing expenses, additional staff and paperwork processing expenses. As such, it 57 MEDOFF is of interest to determine if in the states that use their own funds to pay for Medicaid abortions abortion providers are raising the price of an abortion to cover the additional expenses incurred in seeking reimbursement for performing Medicaid abortions. (2) Since the 1973 Roe v. Wade decision, the Supreme Court in a series of cases has ruled that unmarried teen minors (less than eighteen years of age) have a constitutional right to obtain an abortion. But, states may require that a parent be involved – be notified or give consent – before an abortion is performed. Parental involvement laws may require additional mailing, telephone, or record-keeping expenses. (3) Many states have enacted mandatory counseling laws that require that an abortion provider give or offer to women state-mandated medical information about abortion (e.g., fetal development, future health risks, adoption options). Most mandatory counseling states allow the state-mandated abortion information be provided to the patient by mail, fax, video, the Internet or read over the telephone before the day of the procedure (i.e., not in person). (4) Some states have enacted a more prescribed type of mandatory abortion counseling by requiring that women receive the information in person, usually 24 hours before the procedure. These two-visit waiting period laws require that women make two separate trips to the provider in order to obtain an abortion. Two-visit laws may necessitate additional and costly consultation time with a physician or staff member. (5) Several states also require that women must first undergo an ultrasound of the fetus before the abortion is performed. Requiring an ultrasound may significantly increase the cost of an abortion. (6) Since the mid-1990s, many states have enacted Targeted Regulation of Abortion Providers laws (more commonly known by the acronym TRAP laws). TRAP laws apply only to abortion providers and impose on them a wide variety of onerous and unnecessary physical plant and staffing requirements. TRAP physical plant laws impose on abortion providers’ mandates on the size of their office rooms. TRAP staffing laws mandate the hiring and qualifications of various medical staff professionals. TRAP laws may force abortion providers to increase their prices in order to cover the additional costs of remodeling or hiring additional staff. Literature Review Because of the confidentiality of abortion price data, there exist only three studies in the current literature that have directly examined the relationship between the price of an abortion and the demand for abortions. Medoff (1988) was first to estimate the impact of the price of an abortion on the demand for abortions directly. Using confidential state abortion price data, for the year 1982, he found that the price of an abortion had a significant (p < .001) negative effect on a state’s abortion ratio (the number of abortions per 1000 pregnancies). Garbacz (1990), also using 1982 state data, extended Medoff’s model and found that a 10% increase in the price of an abortion resulted in a decrease in a state’s abortion ratio by 7%. In a related study Medoff (2010), using cross-section time-series data over the period of 1982-2005, found that a $50 increase in the real price of an abortion significantly (p < .001) decreases a state’s abortion ratio by 46 abortions per 1000 pregnancies of women of reproductive age (15-44 years). Several studies have indirectly examined the impact of the out-of-pocket cost of an abortion on the demand for abortion. State Medicaid funding of abortions reduces the out-of-pocket cost of an abortion to zero for low-income women with unwanted pregnancies and as a consequence one would expect an increase in the demand for abortion due to Medicaid funding in those states. 58 IMPACT OF STATE ABORTION POLICY Most studies provide empirical support for this prediction. State Medicaid funding of abortions is found to increase the abortion rate of women of childbearing age (15-44 years) by between 3% to 5%, depending on the time period examined (Blank et al., 1996; Levine et al., 1996; Matthews et al., 1997; Haas-Wilson, 1997; Gohmann & Ohsfeldt, 1993; Medoff, 1997, 2007, 2010). In summary, the available empirical evidence supports the proposition that abortion follows the fundamental law of demand: an increase in the price of an abortion causes a reduction in the number of abortions performed. The one feature that is common to all of the aforementioned studies is that none of them took into account the possibility that restrictive state abortion laws may have an indirect negative effect on abortion demand due to the increase in the price of an abortion that may result from the higher operating costs imposed on abortion providers from complying with the laws. As noted by Althaus and Henshaw (1994) some of the extra costs imposed on abortion providers because of restrictive abortion laws include (1) the hiring of more staff personnel; (2) longer hours for nurses and medical technicians; (3) greater physician consultation time; (4) additional mailing and telephone expenses; (5) additional report and record-keeping expenses; and (6) the legal expenses incurred to ensure that abortion providers are in strict compliance with the restrictive abortion laws. Model In order to measure the impact restrictive state abortion laws have on the price of an abortion, an inverse supply function is estimated which controls for the medical environment (sellers, inputs and input prices) in a state. The abortion price equation to be estimated is: Abortion Pricest = b0 + b1 Abortions Suppliedst + b2 Nursesst + b3 Physiciansst (1) + b4 Medical Wagesst + b5 Restrictive Abortion Lawsst , s = 1, 2, …, 50; t = 2000, 2005, 2008, 2011 The dependent variable, Abortion Price, is the real (inflation-adjusted) price of an abortion (in year 2011 dollars) during the first trimester of pregnancy in each state s during time period t = 2000, 2005, 2008, 2011. Thus there are 200 observations. The average state abortion price (in year 2011 dollars) over the time period 2000-2011 was $562.74 with a standard deviation of $136.58. Over the period 2000-2011, the real abortion price increased from $511 to $626. In 2011, the abortion price ranged from a high of $818 in Montana to a low of $341 in Maryland. The price of an abortion in each state is from the Guttmacher Institute, which directly surveys all abortion providers in a state. The sample years 2000, 2005, 2008 and 2011 are used because these were the only years the Guttmacher Institute collected the price of an abortion in each state. The quantity of Abortions Supplied is the number of abortions performed per 1000 women of childbearing age (15-44 years) in state s during time period t. The remaining independent variables represent the inputs available and the cost of the inputs used by providers to supply abortion services. The variable Nurses, the number of nurses per 100,000 resident population in state s during time period t, reflects the availability of a complementary input used by physicians in providing abortion services. The variable Physicians, the number of physicians per 100,000 resident population, represents the number of physicians potentially capable of performing 59 MEDOFF abortions. Medical Wages is the average weekly wage (in year 2011 dollars) of employees in office and clinics of physicians. Restrictive Abortion Laws is a vector of indicator variables (=1) that represent whether various restrictive abortion laws were in effect in each state/year. Medicaid Funding is equal to one if state s used its public funds to pay for abortions for indigent women. Parental Involvement is equal to one if state s requires parental involvement (either permission or notification) before an unmarried teen minor can have an abortion. Mandatory Counseling is equal to one if state s required an abortion provider furnish to women patients state-mandated abortion-specific medical information before the procedure is performed, but the information does not have to be provided in person. The variable Two-Visit Law equals one if state s required that the statemandated abortion-specific medical information be provided in person at least 24 hours before the procedure, thereby necessitating two separate trips to the abortion provider. The variable Ultrasound equals one if state s has a law requiring that an ultrasound be performed on a woman patient prior to the abortion procedure. The variable TRAP Law takes the value one if state s imposes on abortion providers’ physical plant or staffing requirements not imposed on other comparable physicians/clinics. Data The abortion rate and price, by state, for the years 2000, 2005, 2008 and 2011 are from the Guttmacher Institute. The use of state data is the appropriate unit of measurement because restrictive abortion laws are enacted by states and it is the heterogeneity of restrictive abortion laws within and between states that change the cost of providing abortion services. The number of nurses and physicians are from the U.S. Bureau of the Census, Statistical Abstract of the United States. The average weekly wage of employees in offices and clinics of physicians is from the U.S. Department of Labor, Bureau of Labor Statistics. The status of restrictive abortion laws in each state is from the Guttmacher Institute’s State Policies in Brief. Summary statistics for all the variables appear in Table 1. Empirical Results In equation (1), the number of abortions along with its price reflects the interaction of supply and demand. That is, the willingness of providers to supply abortion services and the willingness of women with unwanted pregnancies to purchase abortion services. As such, the price of an abortion is determined simultaneously with the quantity of abortions (i.e., the abortion price and the abortion quantity are endogenous). The econometric solution to this problem, as noted by Greene (2012 ), is to find instruments (variables) for the quantity of abortions supplied in equation (1) that are correlated with the quantity of abortions supplied, but do not directly affect the abortion price. The instruments selected are the percentage of each state’s population that resides in a metropolitan area and the number of hospitals. Healthcare services (hospitals) tend to locate in metropolitan areas where a large percentage of a state’s population resides. Both of these variables are related to the overall level of accessibility and availability of general medical services in a state, but are unlikely to be significantly affected by the price of an abortion. The bivariate correlation between the abortion price and (1) the percentage of each state’s population that resides in a metropolitan area was -.13 (t=1.70) and (2) the number of hospitals was -.11 (t=1.55). 60 IMPACT OF STATE ABORTION POLICY Equation (1) is then estimated using a two-stage least-squares procedure, whereby the quantity of abortions supplied is estimated in a first-stage equation with all the exogenous variTable 1. Summary Statistics Variable Mean Standard Deviation Abortion Price ($) 562.74 136.58 Abortions Supplied 15.13 8.15 Nurses 868.78 155.40 Physicians 254.49 62.74 Medical Wages ($) 812.4 174.47 Medicaid Funding (=1) .33 .47 Parental Involvement (=1) .68 .46 Mandatory Counseling (=1) .51 .50 Two-Visit Law (=1) .13 .33 Ultrasound (=1) .23 .42 TRAP Law (=1) .23 .46 Note. The mean is the average of each variable for all 50 states for the sample years 2000, 2005, 2008, and 2011. Abortion price is the real (inflation-adjusted) price of an abortion in 2011 dollars. Abortions supplied are the number of abortions performed per 1000 women of childbearing ages (15-44 years). Nurses are the number of nurses per 100, 000 resident state population. Physicians are the number of physicians per 100, 000 resident state population. Medical wages is the average weekly wage of employees in physicians’ offices and clinics in 2011 dollars. ables in equation (1) and the two instruments. In the second stage, the abortions supplied variable in equation (1) is replaced by the predicted values of abortions supplied from the stage one estimation and equation (1) is then estimated using ordinary least-squares. However, a White Test of this estimation showed that the null hypothesis of homoscedasticity was rejected (p< .05). In order to achieve efficient estimates, each variable in equation (1) was weighted by the square root of the number of women of childbearing age (15-44 years) in each state. The weighted two-stage least-squares empirical results appear in Table 2 (the White Test of the null hypothesis of homoscedasticity could not be rejected). The number of Nurses has a positive and significant (p<.001) association with the price of an abortion. This result may seem counter-intuitive since a greater availability of nurses would be expected to decrease the wages paid to nurses and, concomitantly, lower the cost of an abortion. This relationship is consistent with prior research that difficulty employing nurses at abortion facilities due to antiabortion activities (e.g., bombs and death threats, murders, stalking, vandalism, picketing) results in greater wages/salaries for nurses employed by abortion providers 61 MEDOFF and, concomitantly, higher abortion prices (Medoff, 2003). An increase of 87 nurses per 100,000 resident population (or 10%) increases the real price of an abortion by $74. Table 2. Regression Results Dependent Variable Independent Variables Abortion Price (1) Abortion Price (2) Abortions Supplied 31.157 (3.42)**** 29.598 (3.70)**** Nurses .846 (4.12)**** .811 (4.44)**** Physicians -3.127 (3.00) **** -3.063 (3.28)**** Medical Wages -.352 (2.04)** -.276 (1.87)* Medicaid Funding 233.035 (3.41)**** 223.497 (3.65)**** Parental Involvement 113.113 (1.52) 106.121 (1.60) Mandatory Counseling -18.714 (.44) -.908 (.02) Two-Visit Law 107.094 (1.96)** 97.789 (1.94)** Ultrasound -7.208 (.16) -53.323 (1.21) TRAP Law 144.797 (2.99)*** 119.638 (2.85)*** R2 .56 .63 Year-Time Indicators No Yes Note. Absolute value of t-statistics in parentheses: * p< .10, ** p< .05, *** p< .01, **** p< .001. Column 1 shows the regression coefficients from the weighted two-stage least –squares estimation of equation (1). Column 2 shows the regression coefficients from the weighted two-stage least –squares estimation of equation (1) when year-time indicator variables equal to one for each of the years 2000, 2005 and 2008 were added to the model estimation. 62 IMPACT OF STATE ABORTION POLICY The number of Physicians has a significant (p<.01) negative association with the price of an abortion. The larger the number of physicians in a state capable of performing abortions the lower the price of an abortion. An increase of 25 physicians per 100,000 resident population (or 10%) decreases the real price of an abortion by $78. The real weekly wage of employees in physicians’ offices and clinics is significantly (p<.05) negative. This suggests that the inflation-adjusted weekly wage of employees in medical offices and clinics has fallen over time resulting in little or no increase in the real price of an abortion. State funding of Medicaid abortions is significantly (p<.001) positively associated with an increase in the real price of an abortion in a state by $233. This corroborates the finding that abortion providers in states that fund Medicaid abortions incur significantly higher expenses (i.e., paperwork, processing, mailing and telephone, payment delays, staff time) from providing Medicaid abortions resulting in higher abortion prices (Dennis & Blanchard, 2013). Parental involvement laws, mandatory counseling laws and requiring an ultrasound are not significantly associated with an increase the real price of an abortion. These results are not altogether surprising. Most teen minors involve a parent in their decision to have an abortion and thus the abortion providers’ cost of notification/consent is minimal (Ralph et al., 2014; Henshaw & Kost, 1992). In mandatory counseling states the abortion-specific medical information can be provided to patients in a variety of inexpensive ways ( a video on the Internet, a recording over the telephone, fax , mail) that represent a negligible increase in the price of an abortion. Virtually all abortions (92%) are performed in clinics with large caseloads (+400 abortions per year) which also provide a full range of gynecological and family planning services that typically require an ultrasound (Jones & Jerman, 2014). The requirement of an ultrasound does not entail any significant increase in the price of an abortion because the additional abortion patients allows a provider to amortize (spread out) the capital expenses of the ultrasound over more patients resulting in a lower fixed cost per patient. Two-visit laws are significantly (p< .05) positive and are associated with an increase in the real price of an abortion by $107 or equivalently the enforcement of a two-visit law in a state is associated with an increase in the price charged by abortion providers of 19% (evaluated at the sample mean real price of an abortion) − presumably because of the increase in physician/staff time and expenses required to provide patients the state-mandated abortion information in person at least 24 hours before the abortion. The enforcement of a TRAP law in a state is significantly (p< .01) positive and is associated with an increase in the price of an abortion of $144 or equivalently the enforcement of a TRAP law in a state is associated with an increase in the price charged by abortion providers of 25% (evaluated at the sample mean real price of an abortion). The finding that two-visit laws and TRAP laws are significantly associated with an increase in the price of an abortion implies that even if these restrictive abortion laws do not directly affect abortion demand, they indirectly reduce abortion demand through their increase on the price charged by abortion providers. The price elasticity of demand of a good is a number that measures the responsiveness of the quantity demanded of a good as a result of a change in its price. The price elasticity of demand shows the percentage change in the number of abortions performed for every 1% change in the price of an abortion. Previous estimates of the price elasticity of abortion demand range from .68 to -.77 (Medoff, 1988; Garbacz, 1990). Using the increase in the real price of an abortion that is associated with a two-visit law from the previous paragraph of 19% times the literature’s 63 MEDOFF estimates of the price elasticity of abortion demand ( -.68 x 19%; -.77 x 19%) suggests that a two-visit law is associated with a decrease in the number of abortions performed by between 13% and 15%. Similarly, using the increase in the real price of an abortion that is associated with a TRAP law from the previous paragraph of 25% times the literature’s estimates of the price elasticity of abortion demand ( -.68 x 25%; -.77 x 25%) suggests that a two-visit law is associated with a decrease in the number of abortions performed by between 17% and 19%. It might be argued the empirical results in Column 1 of Table 2 are spurious since, over the time period examined 2000-2011, there may be time-varying factors such as changing economic conditions that may have affected abortion providers equally in all states. If these time-varying factors were correlated with a state’s restrictive abortion policy, then the estimated coefficients of the restrictive abortion law variables in Column 1 would be overstated since they would include some of the effects of the omitted time-varying factors. In order to take into account this possibility, a year-time indicator model (an indicator variable equal to one for each of the years 2000, 2005, 2008) was included in the estimation of equation (1). The empirical results appear in Table 2, Column 2. The empirical results in Table 2, Column 2 show that the estimated coefficients of the restrictive abortion laws are virtually identical to their respective counterparts that appear in Column 1 (the null hypothesis of equality of coefficients cannot be rejected). Even after controlling for time-varying factors, two-visit laws and TRAP laws still had a significantly positive association with the real price of an abortion and, concomitantly, indirectly reduce abortion demand through their increase in the price charged by abortion providers. Empirical Estimates of Structural Changes In order to determine if the associations between the model predictors in equation (1) and the abortion price changed, over the time period 2000-2011, the data set was divided into two time periods and equation (1) was re-estimated. The first time period encompasses the years 2000 and 2005 and the second time period is the years 2008 and 2011. The empirical results appear in Table 3, Column 1 (for the sample years 2000 and 2005) when there are no controls for time-varying factors and Column 2 (for the sample years 2000 and 2005) when there are controls for time-varying factors (year-time indicators) and Column 3 (for the sample years 2008 and 2011) when there are no controls for time-varying factors and Column 4 (for the sample years 2008 and 2011) when there are controls for time-varying factors (year-time indicators). Because of space limitations, only the regression coefficients for the restrictive abortion laws appear in Table 3. The empirical results in Table 3 show that, whether or not there are controls for timevarying factors, the regression coefficients of Medicaid funding, two-visit laws and TRAP laws are still significantly positive in both time periods and show no structural change (the null hypotheses of equality of coefficients cannot be rejected between the two time periods). The empirical evidence in Table 3 shows that the results reported in Table 2 are robust. The empirical results in Table 3 consistently show that abortion providers in states that fund Medicaid abortions have higher abortion prices most likely because they incur higher expenses from providing Medicaid abortions. The enforcement of two-visit laws and TRAP laws in a state is associated with an increase in the price charged by abortion providers presumably in order to cover the additional expenses of complying with these laws. 64 IMPACT OF STATE ABORTION POLICY Table 3. Regression Results Dependent Variable Independent Variables Abortion Price (2000, 2005) (1) Abortion Price (2000, 2005) (2) Abortion Price (2008, 2011) (3) Abortion Price (2008, 2011) (4) 193.808 (2.82)*** 189.346 (2.80)*** 228.025 (2.44)** 214.731 (2.40)** Parental Involvement 90.989 (1.16) 88.120 (1.14) 109.372 (1.13) 90.190 (.98) Mandatory Counseling -26.298 (.67) -28.285 (.72) 70.282 (.94) 58.777 (.82) Two-Visit Law 105.006 (1.67)* 110.130 (1.71)* 81.202 (1.17) 74.625 (1.12) Ultrasound -2.698 (.05) -7.021 (.14) -77.999 (1.19) -74.197 (1.19) TRAP Law 81.955 (1.84)* 77.761 (1.79)* 131.687 (1.98)** 129.751 (2.03)** R2 .72 .72 .65 .68 Year-Time Indicators No Yes No Yes Medicaid Funding Note. Absolute value of t-statistics in parentheses: * p< .10, ** p< .05, *** p< .01, **** p< .001. Column 1 shows the regression coefficients for the restrictive state abortion laws when equation (1) is estimated only for the sample years 2000 and 2005 and there is no time indicator variable. Column 2 shows the regression coefficients for the restrictive state abortion laws when equation (1) is estimated only for the sample years 2000 and 2005 and a time-indicator variable equal to one for the year 2000 is included in the model. Column 3 shows the regression coefficients for the restrictive state abortion laws when equation (1) is estimated only for the sample years 2008 and 2011 and there is no time indicator variable, included in the model. Column 4 shows the regression coefficients for the restrictive state abortion laws when equation (1) is estimated only for the sample years 2008 and 2011 and a timeindicator variable equal to one for the year 2008 is included in the model. 65 MEDOFF Conclusion Prior empirical research has found that women with unwanted pregnancies are sensitive to increases in the price of an abortion. An increase in the price of an abortion causes a decrease in the demand for abortion. Restrictive state abortion laws may impose additional expenses on the providers of abortion in order to comply with the laws. As a consequence, restrictive state abortion laws may increase the price of an abortion as abortion providers pass the additional costs of complying with the laws on women seeking an abortion. This increase in the price of an abortion, due to restrictive abortion laws, will reduce the number of abortions performed. This suggests that restrictive state abortion laws may have an indirect negative effect on abortion demand through their positive impact on the price charged by abortion providers. This study empirically examines the impact restrictive state abortion laws have on the price charged by abortion providers over the period 2000-2011. The empirical results found that two restrictive state abortion laws – two-visit laws and TRAP laws – were significantly positively associated with an increase in the price abortion providers charge, presumably from the higher expenses imposed on abortion providers as a result of complying with each restrictive abortion law. State enforcement of a two-visit law and a TRAP law is associated with an increase in the inflation-adjusted price charged by abortion providers by 19% and 25%, respectively. This implies that the indirect effect of a two-visit law and a TRAP law, through their increase on the price abortion providers charge, is to reduce the demand for abortions in a state by between 13% and 15% for a two-visit law and between 17% and 19% for a TRAP law. The Supreme Court has ruled that restrictive state abortion laws are constitutional as long as they do not impose an undue burden on a woman’s decision to have an abortion. 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