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Co-payments for prescription drugs and the demand for doctor visits - Evidence from a natural experiment


Winkelmann, Rainer (2004). Co-payments for prescription drugs and the demand for doctor visits - Evidence from a natural experiment. Health Economics, 13(11):1081-1089.

Abstract

The German health care reform of 1997 provides a natural experiment for evaluating the price sensitivity of demand for physicians’ services. As a part of the reform, co-payments for prescription drugs were increased step up to 200%. However, certain groups of people were exempted from the increase, providing a natural control group against which the changed demand for physicians’ services of the treated, those subject to increased co-payments, can be assessed. The differences-in-differences estimates indicate that increased co-payments reduced the number of doctor visits by about 10% on an average.

Abstract

The German health care reform of 1997 provides a natural experiment for evaluating the price sensitivity of demand for physicians’ services. As a part of the reform, co-payments for prescription drugs were increased step up to 200%. However, certain groups of people were exempted from the increase, providing a natural control group against which the changed demand for physicians’ services of the treated, those subject to increased co-payments, can be assessed. The differences-in-differences estimates indicate that increased co-payments reduced the number of doctor visits by about 10% on an average.

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Additional indexing

Item Type:Journal Article, refereed
Communities & Collections:03 Faculty of Economics > Department of Economics
Dewey Decimal Classification:330 Economics
Language:English
Date:24 February 2004
Deposited On:11 Feb 2008 12:21
Last Modified:05 Apr 2016 12:17
Publisher:Wiley-Blackwell
ISSN:1057-9230
Additional Information:This (the attached file) is a preprint of an article published in Health econ. 2004, 13(11):1081–1089.
Publisher DOI:https://doi.org/10.1002/hec.868

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