Two concepts that have some similarity in the literature on
health economics are "variations in medical care" and "demand
inducement." Indeed, some people have suggested that demand
inducement "explains" variations in medical care. (a) In one or two
sentences, what key feature about "demand inducement" distinguishes
it from "variations in treatment rates.”? (b) What evidence can you
use to support the idea that demand inducement DOES NOT account for
or "explain" variations in medical practice use.
Two concepts that have some similarity in the literature on health economics are "variations in medical care" and "deman
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