Template-type: ReDIF-Paper 1.0
Author-Name: Dalen Gag Morten
Author-Email: dag.m.dalen@bi.no
Author-Name: Furu Kai
Author-Email: kari.furu@fhi.no
Author-Name: Locatelli Marilena
Author-Email: marilena.locatelli@unito.it
Author-Name: Strom Steinar
Author-Email: steinar.strom@econ.uio.no
Author-Workplace-Name: University of Turin
Author-Workplace-Homepage: http://www.est.unito.it/
Title: Generic substitution. Micro evidence from register data in Norway
Abstract: The importance of prices, doctor and patient characteristics, and market institutions for the likelihood 
of choosing generic drugs instead of the more expensive original brand-name version were examined. Using an extensive 
dataset extracted from The Norwegian Prescription Database (NorPD) containing all prescriptions dispensed to individuals 
in February 2004 and 2006 on 23 different drugs (chemical substances) in Norway, we find strong evidence for the 
importance of both doctor and patient characteristics for the choice robabilities. The price difference between 
brand and generic versions and insurance coverage both affect generic substitution. Moreover, controlling for 
the retail chain affiliation of the dispensing pharmacy, we find that pharmacies play an important role in 
promoting generic substitution. In markets with more recent entry of generic drugs, the brand-name loyalty proves 
to be much stronger, giving less explanatory powerto our demand model.
 Length: 25 pages
Creation-Date: 2009-01
File-URL: http://www.est.unito.it/do/home.pl/Download?doc=/allegati/wp2009dip/1_wp_dalen_furu_locatelli_strom.pdf
File-Format: Application/PDF
Handle: RePEc:uto:dipeco:200901