Price Sensitivity of Demand for Prescription Drugs: Exploiting a Regression Kink Design

B-Tier
Journal: Journal of Applied Econometrics
Year: 2016
Volume: 31
Issue: 2
Pages: 320-337

Authors (3)

Marianne Simonsen (Aarhus Universitet) Lars Skipper (not in RePEc) Niels Skipper (not in RePEc)

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

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

Abstract

We investigate price sensitivity of demand for prescription drugs, using drug purchase records for the entire Danish population. We identify price responsiveness by exploiting variation in prices caused by kinked reimbursement schemes and implement a regression kink design. The results suggest some price responsiveness with corresponding price elasticities ranging from −0.2 to −0.7. Individuals with chronic disease and especially individuals above the age of 65 respond less to the price of drugs. Copyright © 2015 John Wiley & Sons, Ltd.

Technical Details

RePEc Handle
repec:wly:japmet:v:31:y:2016:i:2:p:320-337
Journal Field
Econometrics
Author Count
3
Added to Database
2026-01-29