The Demand for Post-Patent Prescription Pharmaceuticals / Judith K. Hellerstein.

By:

Hellerstein, Judith K

Contributor(s):

National Bureau of Economic Research

Material type: Text

TextSeries: Working Paper Series (National Bureau of Economic Research) ; no. w4981.Publication details: Cambridge, Mass. National Bureau of Economic Research 1994.Description: 1 online resource: illustrations (black and white)Subject(s):

I11 - Analysis of Health Care Markets

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Available additional physical forms:

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Abstract: This paper examines why physicians continue to prescribe trade- name drugs when less expensive generic substitutes are available. I utilize a data set on physicians, their patients, and the multi-source drugs prescribed to study the prescription habits of physicians in prescribing generic and trade-name drugs. The results indicate that almost all physicians prescribe both types of drugs to their patients. There is, however, persistence in the prescription behavior of physicians, so that some physicians are more likely to prescribe trade-name drugs, while others more often prescribe generics. While much of this persistence cannot be explained by observable characteristics of the physician or the physician's patients, patients who are treated by physicians with large numbers of HMO or pre-paid patients are more likely to be prescribed generics, and there is wide regional variation in the propensity of physicians to prescribe generic drugs. The results are most consistent with an explanation of physicians' prescription behavior based on habit persistence.

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Item type	Home library	Collection	Call number	Status	Date due	Barcode	Item holds
Working Paper	Biblioteca Digital	Colección NBER	nber w4981 (Browse shelf(Opens below))	Not For Loan

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December 1994.

This paper examines why physicians continue to prescribe trade- name drugs when less expensive generic substitutes are available. I utilize a data set on physicians, their patients, and the multi-source drugs prescribed to study the prescription habits of physicians in prescribing generic and trade-name drugs. The results indicate that almost all physicians prescribe both types of drugs to their patients. There is, however, persistence in the prescription behavior of physicians, so that some physicians are more likely to prescribe trade-name drugs, while others more often prescribe generics. While much of this persistence cannot be explained by observable characteristics of the physician or the physician's patients, patients who are treated by physicians with large numbers of HMO or pre-paid patients are more likely to be prescribed generics, and there is wide regional variation in the propensity of physicians to prescribe generic drugs. The results are most consistent with an explanation of physicians' prescription behavior based on habit persistence.