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Longitudinal Analysis of Generic Substitution

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  • Marilena Locatelli

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  • Steinar Strøm

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Abstract

Using an extensive longitudinal dataset extracted from the Norwegian Prescription Database (NorPD), Norwegian title: Reseptregisteret, from the Norwegian Institute of Public Health ( NIPH ) containing all prescriptions written in the period May 2004 to June 2007, we selected two particular drugs (chemical substances) used against cholesterol. The two brand-name products on the Norwegian markets are Provachol (Anatomic Therapeutic Chemical (ATC) classification code C10AA03) and Zocor (ATC code C10AA01). The generics are Provastatine and Simastatine. We find that prices have a negative impact on transitions in the sense that an increase in the brand price will reduce the transition from generics to brand and likewise an increase in the generic price will reduce the transition from brand to generics. Moreover, we find that the older a male doctor is, the more likely it is that he continues to prescribe the brand-name product. Copyright International Atlantic Economic Society 2015

Suggested Citation

  • Marilena Locatelli & Steinar Strøm, 2015. "Longitudinal Analysis of Generic Substitution," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 43(3), pages 363-374, September.
  • Handle: RePEc:kap:atlecj:v:43:y:2015:i:3:p:363-374
    DOI: 10.1007/s11293-015-9462-6
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    File URL: http://hdl.handle.net/10.1007/s11293-015-9462-6
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    References listed on IDEAS

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    1. Andreassen, Leif & Di Tommaso, Maria Laura & Strøm, Steinar, 2013. "Do medical doctors respond to economic incentives?," Journal of Health Economics, Elsevier, vol. 32(2), pages 392-409.
    2. Dag Dalen & Kari Furu & Marilena Locatelli & Steinar Strøm, 2011. "Generic substitution: micro evidence from register data in Norway," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 12(1), pages 49-59, February.
    3. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521766555, April.
    4. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521747387, April.
    5. John K. Dagsvik, 2002. "Discrete Choice in Continuous Time: Implications of an Intertemporal Version of the Iia Property," Econometrica, Econometric Society, vol. 70(2), pages 817-831, March.
    6. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521747387, April.
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    Cited by:

    1. Elsayyad, May & Konrad, Kai A., 2012. "Fighting multiple tax havens," Journal of International Economics, Elsevier, vol. 86(2), pages 295-305.

    More about this item

    Keywords

    Generics; Substitution; Microdata; Random utility model; Longitudinal data; C35; I 18; L 65;

    JEL classification:

    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • L65 - Industrial Organization - - Industry Studies: Manufacturing - - - Chemicals; Rubber; Drugs; Biotechnology; Plastics

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