ABSTRACT This paper estimates the price elasticity of demand for prescription drugs using an exogenous shift in consumer co-payment caused by a reform in the Danish subsidy scheme for the general public. Using purchasing records for the entire Danish population, I show that the average price response for the most commonly used drug yields demand elasticities in the range of ?0.36 to ?0.5. The reform is shown to affect women, the elderly, and immigrants the most. Furthermore, this paper shows significant heterogeneity in the price response over different types of antibiotics, suggesting that the price elasticity of demand varies considerably even across relatively similar drugs.
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ON THE DEMAND FOR PRESCRIPTION DRUGS: HETEROGENEITY IN PRICE RESPONSES
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Posted by Health Economics Journal on Aug 16 2012. Filed under Journal Watch. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry4th Of July Desserts fireworks fireworks 4th of July Andy Griffith joe johnson scientology
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