Is There a Physician Peer Effect? Evidence from New Drug Prescriptions

22 Pages Posted: 20 Nov 2013

See all articles by Muzhe Yang

Muzhe Yang

Lehigh University - Department of Economics

Hsien‐Ming Lien

National Chengchi University (NCCU)

Shin-Yi Chou

Lehigh University - Department of Economics; National Bureau of Economic Research (NBER)

Date Written: January 2014

Abstract

We investigate whether and how physicians' prescriptions of a new drug are influenced by their colleagues in the same hospital during shared working time. We use longitudinal data of physicians who prescribed antipsychotic drugs for schizophrenia patients in Taiwan between 1997 and 2010. We find that peer effects are small, but stronger among physicians of similar age and among those sharing a longer, larger, or more stable group. Peer effects are also stronger when drugs are newly introduced. We also find that peer effects are more likely to be overestimated using fixed‐effect models than using first‐difference models.

JEL Classification: D01, D83, I10

Suggested Citation

Yang, Muzhe and Lien, Hsienming and Chou, Shin-Yi, Is There a Physician Peer Effect? Evidence from New Drug Prescriptions (January 2014). Economic Inquiry, Vol. 52, Issue 1, pp. 116-137, 2014. Available at SSRN: https://ssrn.com/abstract=2357228 or http://dx.doi.org/10.1111/ecin.12022

Muzhe Yang (Contact Author)

Lehigh University - Department of Economics ( email )

621 Taylor Street
Bethlehem, PA 18015
United States

Hsienming Lien

National Chengchi University (NCCU) ( email )

No. 64, Chih-Nan Road
Section 2
Wenshan, Taipei, 11623
Taiwan

Shin-Yi Chou

Lehigh University - Department of Economics ( email )

620 Taylor Street
Bethlehem, PA 18015
United States

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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