We develop a model of induced innovation where research effort is a function of the death rate, and thus the potential … innovation based on differences in disease prevalence across population subgroups (i.e. race). Our model yields three empirical … predictions. First, initial death rates and subsequent research effort should be positively correlated. Second, research effort …

We develop a model of induced innovation that applies to medical research. Our model yields three empirical predictions …. First, initial death rates and subsequent research effort should be positively correlated. Second, research effort should be … a whole, induced innovation leads to growth in mortality disparities between minority and majority groups. Using …