The Effect of Prescription Drug Advertising on Doctor Visits

44 Pages Posted: 22 Feb 2005

See all articles by Toshiaki Iizuka

Toshiaki Iizuka

University of Tokyo

Ginger Zhe Jin

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

Abstract

The dramatic increase of direct-to-consumer advertising (DTCA) of prescription drugs created intensive debates on its effects on patient and doctor behaviors. Combining 1994-2000 DTCA data with the 1995-2000 National Ambulatory Medical Care Surveys, we examine the effect of DTCA on doctor visits. Consistent with the proponents' claim, we find that higher DTCA expenditures are associated with increased doctor visits, especially after the Food and Drug Administration clarified DTCA rules in August 1997. After 1997, every $28 increase in DTCA leads to one drug visit within 12 months. We also find that the market-expanding effect is similar across demographic groups.

Keywords: Prescription drug, advertising, direct-to-consumer, market expanding

Suggested Citation

Iizuka, Toshiaki and Jin, Ginger Zhe, The Effect of Prescription Drug Advertising on Doctor Visits. Journal of Economics and Management Strategy, Forthcoming. Available at SSRN: https://ssrn.com/abstract=670983

Toshiaki Iizuka

University of Tokyo ( email )

7-3-1 Hongo, Bunkyo-ku
Tokyo 113-0033
Japan

Ginger Zhe Jin (Contact Author)

University of Maryland - Department of Economics ( email )

College Park, MD 20742
United States
301-405-3484 (Phone)
301-405-3542 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
387
Abstract Views
3,548
rank
77,593
PlumX Metrics