The importance of the first generic substitution: Evidence from Sweden

Arbeitspapier

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. The impact of a first substitution is especially large among elderly patients. 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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IFN Working Paper ; No. 1428

Classification and Topics

• Classification: Wirtschaft ; Consumer Economics: Empirical Analysis ; Analysis of Health Care Markets ; Health Behavior
• Subject: Generic Substitution ; Pharmaceuticals ; Health Care Costs

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Janssen, Aljoscha ; Granlund, David
• Event: Veröffentlichung
• (who): Research Institute of Industrial Economics (IFN)
• (where): Stockholm
• (when): 2022

Further information

• Handle: http://hdl.handle.net/10419/262042
• Last update: 10.03.2025, 11:44 AM CET