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Drug Advertising and Health Habit

  • Toshiaki Iizuka
  • Ginger Zhe Jin
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    We examine the effect of direct-to-consumer advertising (DTCA) of drug treatment on an important health habit, physical exercise. By learning the existence of a new drug treatment via DTCA, rational consumers may become careless about maintaining healthy lifestyles. Using the National Health Insurance Survey (NHIS) and MSA-level DTCA data, we find that the DTCA related to four chronic conditions -- diabetes, high cholesterol, over weight, and hypertension -- reduce the likelihood of engaging in moderate exercise. This suggests the possibility that DTCA does not only affect pharmaceutical demand in the short-run, but also have long-run impacts on people's health by affecting their daily routines.

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    File URL: http://www.nber.org/papers/w11770.pdf
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    Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 11770.

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    Date of creation: Nov 2005
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    Handle: RePEc:nbr:nberwo:11770
    Note: HE IO
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    1. John Cawley, 2004. "The Impact of Obesity on Wages," Journal of Human Resources, University of Wisconsin Press, vol. 39(2).
    2. Peltzman, Sam, 1975. "The Effects of Automobile Safety Regulation," Journal of Political Economy, University of Chicago Press, vol. 83(4), pages 677-725, August.
    3. Toshiaki Iizuka & Ginger Zhe Jin, 2005. "The Effect of Prescription Drug Advertising on Doctor Visits," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 14(3), pages 701-727, 09.
    4. Bound, John & Brown, Charles & Mathiowetz, Nancy, 2001. "Measurement error in survey data," Handbook of Econometrics, in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 5, chapter 59, pages 3705-3843 Elsevier.
    5. Rosemary J. Avery & Donald S. Kenkel & Dean R. Lillard & Alan D. Mathios, 2006. "Regulating Advertisements: The Case of Smoking Cessation Products," NBER Working Papers 12001, National Bureau of Economic Research, Inc.
    6. Lindgren, Bjorn & Stuart, Charles, 1980. "The Effects of Traffic Safety Regulation in Sweden," Journal of Political Economy, University of Chicago Press, vol. 88(2), pages 412-27, April.
    7. Meredith B. Rosenthal & Ernst R. Berndt & Julie M. Donohue & Arnold M. Epstein & Richard G. Frank, 2003. "Demand Effects of Recent Changes in Prescription Drug Promotion," NBER Chapters, in: Frontiers in Health Policy Research, Volume 6, pages 1-26 National Bureau of Economic Research, Inc.
    8. Rosenthal Meredith B. & Berndt Ernst R. & Donohue Julie M. & Epstein Arnold M. & Frank Richard G., 2003. "Demand Effects of Recent Changes in Prescription Drug Promotion," Forum for Health Economics & Policy, De Gruyter, vol. 6(1), pages 1-28, January.
    9. Emery, Sherry & White, Martha M. & Pierce, John P., 2001. "Does cigarette price influence adolescent experimentation?," Journal of Health Economics, Elsevier, vol. 20(2), pages 261-270, March.
    10. Viscusi, W Kip, 1985. "Consumer Behavior and the Safety Effects of Product Safety Regulation," Journal of Law and Economics, University of Chicago Press, vol. 28(3), pages 527-53, October.
    11. Toshiaki Iizuka, 2004. "What Explains the Use of Direct-to-Consumer Advertising of Prescription Drugs?," Journal of Industrial Economics, Wiley Blackwell, vol. 52(3), pages 349-379, 09.
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