EconPapers    
Economics at your fingertips  
 

Mandatory Disclosure: Theory and Evidence from Industry-Physician Relationships

Daniel L. Chen, Vardges Levonyan, S. Eric Reinhart and Glen Taksler

The Journal of Legal Studies, 2019, vol. 48, issue 2, 409 - 440

Abstract: The interaction of disclosure laws and the targeted behavior is typically unknown since data on disclosed activity rarely exist in the absence of disclosure laws. We exploit legal settlements disclosing pharmaceutical company payments across the United States. Strong-disclosure states (requiring publicly available data) had reduced payments among doctors accepting less than $100 and increased payments among doctors accepting greater than $100. Weak-disclosure states (requiring reporting to state authorities), despite imposing administrative compliance costs to industry, were indistinguishable from nondisclosure states, which suggests physicians’ disclosure aversion as a primary mechanism. Additional analyses holding fixed the cost for pharmaceutical companies of disclosing data and a differences-in-discontinuities model in distribution of payments at the disclosure threshold among strong- and weak-disclosure states support this interpretation. Significant disclosure aversion reducing conflicts of interest is consistent with the policy goals of mandatory disclosure, though the increased payments among those receiving large payments may have been unintended.

Date: 2019
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://dx.doi.org/10.1086/704068 (application/pdf)
http://dx.doi.org/10.1086/704068 (text/html)
Access to the online full text or PDF requires a subscription.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ucp:jlstud:doi:10.1086/704068

Access Statistics for this article

More articles in The Journal of Legal Studies from University of Chicago Press
Bibliographic data for series maintained by Journals Division ().

 
Page updated 2021-04-05
Handle: RePEc:ucp:jlstud:doi:10.1086/704068