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Do Physicians Contribute To Economic Growth? An Empirical Analysis, Mary Reilly

Honors Scholar Theses

Physicians may contribute to economic growth in two distinct, opposite ways. On the one hand, an efficient number of physicians may keep people healthy, which raises the productivity of laborers and allows them to return to work quickly after an illness. This type of profit-seeking behavior by physicians should raise the growth of the economy. On the other hand, too many physicians may exist in a market area, which leads to supplier-induced demand (SID). The SID may keep laborers out of work for longer periods and thereby negatively impact the growth of the economy. Moreover, the extra number of physicians …