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The Diffusion of a Medical Innovation: Is Success in the Stars? Further Evidence

Author

Listed:
  • Mary A. Burke

    () (Economic Research Department, Federal Reserve Bank of Boston, P.O. Box 55882, Boston, MA 02205, USA)

  • Gary M. Fournier

    () (Department of Economics, Florida State University, Tallahassee, FL 32306-2180, USA)

  • Kislaya Prasad

    () (Robert H. Smith School of Business, University of Maryland at College Park, College Park, MD 20742, USA)

Abstract

Burke, Fournier, and Prasad (2007) present evidence of star effects in the adoption and utilization of stents following their introduction in the mid-1990s. Here, we experiment with alternative constructions of star status and with additional control variables in the analysis and find further supporting evidence. Conditioning star status upon prior adoption of stents yields significant effects on the utilization of stents by nonstars. In contrast, the results show no evidence that the number of nonstars present affects the utilization of stars. Moreover, the empirical effect is stronger when the definition of star physicians is restricted to those with more recent residency training. We argue for further research focusing on asymmetric aspects of peer effects among physicians interacting locally in medical practice environments.

Suggested Citation

  • Mary A. Burke & Gary M. Fournier & Kislaya Prasad, 2009. "The Diffusion of a Medical Innovation: Is Success in the Stars? Further Evidence," Southern Economic Journal, Southern Economic Association, vol. 75(4), pages 1274-1278, April.
  • Handle: RePEc:sej:ancoec:v:75:4:y:2009:p:1274-1278
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    Cited by:

    1. Cappellaro, Giulia & Ghislandi, Simone & Anessi-Pessina, Eugenio, 2011. "Diffusion of medical technology: The role of financing," Health Policy, Elsevier, vol. 100(1), pages 51-59, April.

    More about this item

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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