Are Physicians' Prescribing Decisions Sensitive to Drug Prices? Evidence from a Free‐antibiotics Program

B-Tier
Journal: Health Economics
Year: 2015
Volume: 24
Issue: 2
Pages: 158-174

Authors (2)

Shanjun Li (Cornell University) Ramanan Laxminarayan (not in RePEc)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper investigates whether patient‐level factors, in particular cost considerations, affect the physicians' prescribing decisions. In the context of a natural experiment, we examine the effect of the first US commercial free‐antibiotics program on retail antibiotic sales. We find an overall increase in antibiotic prescriptions under the program and substitutions to covered antibiotics from not‐covered antibiotics. The shift away from not‐covered antibiotics, particularly from those without covered equivalents, indicates a change in the physicians' prescribing decisions. We locate stronger program effects in low‐income areas. Our findings, robust to a variety of specifications, are in contrast with previous literature. Copyright © 2013 John Wiley & Sons, Ltd.

Technical Details

RePEc Handle
repec:wly:hlthec:v:24:y:2015:i:2:p:158-174
Journal Field
Health
Author Count
2
Added to Database
2026-01-25