Prescription drug use under Medicare Part D: A linear model of nonlinear budget sets

• 成果类型: Article
• 署名作者: Abaluck, Jason; Gruber, Jonathan; Swanson, Ashley
• 署名单位: Yale University; National Bureau of Economic Research; Massachusetts Institute of Technology (MIT); University of Pennsylvania
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/j.jpubeco.2018.05.005
• 发表日期: 2018
• 页码: 106-138
• 关键词: Moral hazard; Nonlinear budget sets; SALIENCE; medicare; prescription drugs

摘要

Medicare Part D enrollees face a complicated decision: they dynamically choose prescription drug consumption in each period given difficult-to-find prices and a nonlinear budget set. We use Part D claims data to estimate a flexible model of consumption that accounts for nonlinear prices, dynamic responses, and salience. We use reduced form price responses from a linear regression of consumption on coverage range prices to compare performance under several models of behavior. We find small price elasticities, substantial myopia, and that salient characteristics impact consumption beyond their effect on prices. A hyperbolic discounting model with salience fits the data best. (C) 2018 Elsevier B.V. All rights reserved.