Template-type: ReDIF-Paper 1.0
Author-Name:Morten Dalen Dag
Author-Email: dag.m.dalen@bi.no
Author-Name: Locatelli Marilena 
Author-Email: marilena.locatelli@unito.it
Author-Name: Sorisio Enrico
Author-Email: enrico.sorisio@pharmaness.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:Does the Identity of the Third-Party Payer Matters for Prescribing Doctors?
Abstract: TNF-alpha inhibitors represent one of the most important areas of biopharmaceuticals by
sales, with three blockbusters accounting for 8 per cent of total pharmaceutical sale in
Norway. Novelty of the paper is to examine, with the use of a unique natural policy
experiment in Norway, to what extent the price responsiveness of prescription choices is
affected when the identity of the third-party payer changes. The three dominating drugs
in this market, Enbrel, Remicade, and Humira, are substitutes, but have had different and
varying funding schemes - hospitals and the national insurance plan. A stochastic
structural model for the three drugs, covering demand and price setting, is estimated in a
joint maximum likelihood approach. We find that doctors are more responsive when the
costs are covered by the hospitals compared to when costs are covered by national
insurance
Length: 27 pages
Creation-Date: 2012-04
File-URL: http://www.est.unito.it/do/home.pl/Download?doc=/allegati/wp2012dip/8_wp_dalen_locatelli_sorisio_strom.pdf
File-Format: Application/PDF
Handle: RePEc:uto:dipeco:201208