The Impact of Information Technology on the Diffusion of New Pharmaceuticals
American Economic Journal: Applied Economics
vol. 12,
no. 3, July 2020
(pp. 1-39)
Abstract
Do information differences across US physicians contribute to treatment disparities? This paper uses a unique new dataset to evaluate how changes in physician access to a decision-relevant drug database affect prescribing decisions. Our results indicate doctors using the reference have a significantly greater propensity to prescribe generic drugs, are faster to begin prescribing new generics, and prescribe a more diverse set of products. These results are consistent with database users responding primarily to the increased accessibility of non-clinical information such as pricing and insurance formulary data, and suggest improvements to physician information access have important implications for aggregate healthcare costs.Citation
Arrow, Kenneth J., L. Kamran Bilir, and Alan Sorensen. 2020. "The Impact of Information Technology on the Diffusion of New Pharmaceuticals." American Economic Journal: Applied Economics, 12 (3): 1-39. DOI: 10.1257/app.20170647Additional Materials
JEL Classification
- D83 Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
- I11 Analysis of Health Care Markets
- I18 Health: Government Policy; Regulation; Public Health
- L65 Chemicals; Plastics; Rubber; Drugs; Biotechnology
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