Does Physician Dispensing Increase Drug Expenditures?
We analyze whether the possibility for physicians to dispense drugs increases health care expenditures due to the incentives created by the markup on drugs sold. Using comprehensive physician-level data from Switzerland, we exploit the fact that there is regional variation in the dispensing regime to estimate policy effects. The empirical strategy consists of doubly-robust estimation which combines inverse-probability weighting with regression. Our main finding suggests that if dispensing is permitted, physicians produce significantly higher drug costs in the order of 30% per patient.
|Date of creation:||Jul 2013|
|Date of revision:|
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- Richard K. Crump & V. Joseph Hotz & Guido W. Imbens & Oscar A. Mitnik, 2004.
"Dealing with Limited Overlap in Estimation of Average Treatment Effects,"
0716, University of Miami, Department of Economics, revised 12 Jun 2007.
- Richard K. Crump & V. Joseph Hotz & Guido W. Imbens & Oscar A. Mitnik, 2009. "Dealing with limited overlap in estimation of average treatment effects," Biometrika, Biometrika Trust, vol. 96(1), pages 187-199.
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- Filippini, M. & Heimsch, F. & Masiero, G., 2014.
"Antibiotic consumption and the role of dispensing physicians,"
Regional Science and Urban Economics,
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