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The importance of the first generic substitution: Evidence from Sweden
Singapore Management University, Department of Economics, 90 Stamford Rd, Singapore.
Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics.ORCID iD: 0000-0003-4467-8676
2023 (English)In: Journal of Economic Behavior and Organization, ISSN 0167-2681, E-ISSN 1879-1751, Vol. 213, p. 1-25Article in journal (Refereed) Published
Abstract [en]

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 employ a dynamic event study and an instrumental variable approach to show that an initial substitution reduces the probability of opposing subsequent substitutions by 39 percentage 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.

Place, publisher, year, edition, pages
Elsevier, 2023. Vol. 213, p. 1-25
Keywords [en]
Generic substitution, Health care costs, Pharmaceuticals
National Category
Economics
Identifiers
URN: urn:nbn:se:umu:diva-212417DOI: 10.1016/j.jebo.2023.07.017Scopus ID: 2-s2.0-85165117827OAI: oai:DiVA.org:umu-212417DiVA, id: diva2:1784628
Funder
The Jan Wallander and Tom Hedelius FoundationTore Browaldhs stiftelse, P2016-0113:1Available from: 2023-07-28 Created: 2023-07-28 Last updated: 2023-07-28Bibliographically approved

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Granlund, David

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Output format
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