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This article addresses the relationship between the choices of a policy target and the institutional structure of the delivery system, focusing on states' desire to increase the production of primary care physicians. We examine two possible strategies—an institutional strategy in which state dollars are provided directly to medical schools and an individual strategy in which financial incentives are provided directly to students. We hypothesize that a state's choice between the strategies can be understood by institutional characteristics of the state's medical schools. Results indicate that these characteristics do have an influence on the choice of policy target.
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Knott et al. (1995) studied this question.
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