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

Marianne Simonsen; Lars Skipper; Niels Skipper

doi:10.1002/jae.2436

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

Marianne Simonsen, Lars Skipper, Niels Skipper

Research output: Contribution to journal/Conference contribution in journal/Contribution to newspaper › Journal article › Research › peer-review

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.

Original language	English
Journal	Journal of Applied Econometrics
Volume	31
Issue	2
Pages (from-to)	320-337
ISSN	0883-7252
DOIs	https://doi.org/10.1002/jae.2436
Publication status	Published - 2016

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10.1002/jae.2436

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@article{6b7c3840ef27453f88e688d16200131e,

title = "Price Sensitivity of Demand for Prescription Drugs: Exploiting a Regression Kink Design",

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.",

author = "Marianne Simonsen and Lars Skipper and Niels Skipper",

note = "Campus adgang til artiklen / Campus access to the article",

year = "2016",

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journal = "Journal of Applied Econometrics",

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T2 - Exploiting a Regression Kink Design

AU - Simonsen, Marianne

AU - Skipper, Lars

AU - Skipper, Niels

N1 - Campus adgang til artiklen / Campus access to the article

PY - 2016

Y1 - 2016

N2 - 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.

AB - 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.

U2 - 10.1002/jae.2436

DO - 10.1002/jae.2436

M3 - Journal article

SN - 0883-7252

VL - 31

SP - 320

EP - 337

JO - Journal of Applied Econometrics

JF - Journal of Applied Econometrics

IS - 2

ER -

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

Abstract

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