The importance of the first generic substitution: Evidence from Sweden
We analyze changes in the willingness to substitute from prescribed pharmaceuticals to more affordable generic equivalents in response to the first experience with a substitution. Using Swedish individual-level data of prescribed and dispensed pharmaceuticals, we em-ploy a dynamic event study and an...
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Main Authors: | , |
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Format: | text |
Language: | English |
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Institutional Knowledge at Singapore Management University
2023
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Online Access: | https://ink.library.smu.edu.sg/soe_research/2697 https://ink.library.smu.edu.sg/context/soe_research/article/3696/viewcontent/SSRN_id4072191.pdf |
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Institution: | Singapore Management University |
Language: | English |
Summary: | We analyze changes in the willingness to substitute from prescribed pharmaceuticals to more affordable generic equivalents in response to the first experience with a substitution. Using Swedish individual-level data of prescribed and dispensed pharmaceuticals, we em-ploy a dynamic event study and an instrumental variable approach to show that an initial substitution reduces the probability of opposing subsequent substitutions by 39 percent-age points. We recommend that policy-makers target patients with a history of opposed substitution and offer additional discounts to promote substitution as long-term savings outweigh one-time costs. |
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