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Social Environment as a Barrier to Treatment and Innovation Adoption

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  • Laura Grigolon
  • Laura Lasio

Abstract

Lung cancer is associated with smoking and characterized by low treatment rates and research funds. We estimate a model of treatment choice where patients internalize the negative social environment surrounding the disease, basing their treatment decision on the treatment decisions of their reference group. Identification rests on the exogenous variation in the treatment propensity of physicians. Placing all patients in a neighborhood characterized by low social discrimination increases treatment rates by 7.6% and the use of innovative therapies by 6.7%. Social effects account for around 4% less research funding for this disease.

Suggested Citation

  • Laura Grigolon & Laura Lasio, 2023. "Social Environment as a Barrier to Treatment and Innovation Adoption," CRC TR 224 Discussion Paper Series crctr224_2025_277v3, University of Bonn and University of Mannheim, Germany, revised Feb 2025.
    • Handle: RePEc:bon:boncrc:crctr224_2025_277v3
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    File URL: https://www.crctr224.de/research/discussion-papers/archive/dp277
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    References listed on IDEAS

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    1. Heckman, James J, 1978. "Dummy Endogenous Variables in a Simultaneous Equation System," Econometrica, Econometric Society, vol. 46(4), pages 931-959, July.
    2. Eric Budish & Benjamin N. Roin & Heidi Williams, 2015. "Do Firms Underinvest in Long-Term Research? Evidence from Cancer Clinical Trials," American Economic Review, American Economic Association, vol. 105(7), pages 2044-2085, July.
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    More about this item

    Keywords

    Cancer Care; Health Behavior; Social Interactions; Innovation;
    All these keywords.

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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