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. 1993 Spring;14(3):11–23.
Ei1 is Medicaid expenditures in State i at MFS levels.
Ei2 is Medicaid expenditures in State i at actual 1990 Medicaid fee levels.
i is the percent change in the Medicaid fee index in State i associated with increasing fees to MFS levels.
i is the percent change in services per enrollee in State i, i = iε.
ε is the elasticity of services per enrollee with respect to the Medicaid fee index.