Physician-induced demand for childbirths.

  title={Physician-induced demand for childbirths.},
  author={David Dranove and Paulette S Wehner},
  journal={Journal of health economics},
  volume={13 1},
A controversial technique for testing the hypothesis that physicians induce demand involves two stage least squares (TSLS) regression analysis of cross-section data on physician supply and utilization. This paper tests the power of TSLS by applying it where there is at most only a trivial amount of demand inducement--the demand for childbirths. We find 'evidence' of inducement of childbirths, calling into question the validity of the TSLS approach. This unlikely finding may be traced to at… CONTINUE READING