The Impact of Information Technology on the Diffusion of New Pharmaceuticals
Kenneth J. Arrow
L. Kamran Bilir
- American Economic Journal: Applied Economics (Forthcoming)
Do information differences across U.S. 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.
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