Drug price sensitivity among physicians in a developing healthcare system: Evidence from the Philippine market for statins and beta blockers
Cielo Magno and
Ricardo Rafael S. Guzman
Economic Analysis and Policy, 2019, vol. 62, issue C, 268-279
In healthcare systems with limited drug regulation and weakly enforced generic substitution policies, do physicians prescribe drugs on the basis of prices? This paper tests this result by examining prescription behavior in the Philippines market for lipid-lowering and cardioselective beta blocking agents. Using individual level data on physician prescriptions from the 2013 IMS Health Physician Medical Data Index, we estimate a nested multinomial logit model to examine responses of physicians to price variations across and within an expanded choice set of generic, branded originator, and branded non-originator (‘me-too’) drugs. We demonstrate that price variation across molecules has a substantial effect on the choice of molecule and this effect varies with physician and patient characteristics. This suggests price sensitivity on the part of the physicians who may adjust their prescriptions accordingly.
Keywords: Prescription drugs; Physician prescribing behavior; Price-sensitivity; Generic drugs; Branded drugs (search for similar items in EconPapers)
JEL-codes: I12 I18 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:62:y:2019:i:c:p:268-279
Access Statistics for this article
Economic Analysis and Policy is currently edited by Clevo Wilson
More articles in Economic Analysis and Policy from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().