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Fixed Budgets as a Cost Containment Measure for Pharmaceuticals

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Author Info
Granlund, David () (Department of Economics, Umeå University)
Rudholm, Niklas () (Department of Economics, Umeå University)
Wikström, Magnus () (Department of Economics, Umeå University)

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Abstract

In the county of Västerbotten, Sweden, there are two health centres which (contrary to all other health centres in the region) have a strict responsibility over their pharmaceutical budget. The purpose of this paper is to examine if the prices and quantities of pharmaceuticals prescribed by physicians working at these health centres differ significantly from those prescribed by physicians at health centres with open-ended budgets. Estimation results using matching methods, which allows us to compare similar patients at the different health centres, show that the introduction of fixed pharmaceutical budgets did not affect physicians' prescription behaviour.

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Publisher Info
Paper provided by Umeå University, Department of Economics in its series Umeå Economic Studies with number 639.

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Length: 27 pages
Date of creation: 27 Aug 2004
Date of revision:
Handle: RePEc:hhs:umnees:0639

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Postal: Department of Economics, Umeå University, S-901 87 Umeå, Sweden
Phone: 090 - 786 61 42
Fax: 090 - 77 23 02
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Web page: http://www.econ.umu.se/
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Related research
Keywords: pharmaceuticals; cost containment; propensity score matching;

Other versions of this item:

Find related papers by JEL classification:
I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

This paper has been announced in the following NEP Reports:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Lundin, Douglas, 2000. "Moral hazard in physician prescription behavior," Journal of Health Economics, Elsevier, vol. 19(5), pages 639-662, September. [Downloadable!] (restricted)
  2. Janos Kornai & Eric Maskin & Gerard Roland, 2003. "Understanding the Soft Budget Constraint," Journal of Economic Literature, American Economic Association, vol. 41(4), pages 1095-1136, December.
    Other versions:
  3. Jeffrey Smith & Petra Todd, 2003. "Does Matching Overcome Lalonde's Critique of Nonexperimental Estimators?," University of Western Ontario, CIBC Human Capital and Productivity Project Working Papers 20035, University of Western Ontario, CIBC Human Capital and Productivity Project. [Downloadable!]
    Other versions:
  4. Heckman, James J & Ichimura, Hidehiko & Todd, Petra, 1998. "Matching as an Econometric Evaluation Estimator," Review of Economic Studies, Blackwell Publishing, vol. 65(2), pages 261-94, April. [Downloadable!] (restricted)
  5. Heckman, James J & Ichimura, Hidehiko & Todd, Petra E, 1997. "Matching as an Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," Review of Economic Studies, Blackwell Publishing, vol. 64(4), pages 605-54, October. [Downloadable!] (restricted)
  6. Canice Prendergast, 1999. "The Provision of Incentives in Firms," Journal of Economic Literature, American Economic Association, vol. 37(1), pages 7-63, March. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Kim Olsen & Dorte Gyrd-Hansen & Andreas Boegh & Sofie Hansen, 2009. "GPs as citizens’ agents: prescription behavior and altruism," The European Journal of Health Economics, Springer, vol. 10(4), pages 399-407, October. [Downloadable!] (restricted)
  2. Granlund, David, 2008. "Does Physicians' Compensation Affect the Probability of their Vetoing Generic Substitution?," HUI Working Papers 14, The Swedish Retail Institute (HUI). [Downloadable!]
  3. Granlund, David, 2008. "Does physicians' compensation affect the probability of their vetoing generic substitution?," UmeÃ¥ Economic Studies 729, Umeå University, Department of Economics, revised 26 Mar 2008. [Downloadable!]
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