Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/271830 
Year of Publication: 
2022
Series/Report no.: 
CESifo Working Paper No. 10186
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
We analyze prescription behavior of physicians in the public and private sector. We study two major diseases for which an effective, widely accepted low-cost treatment and alternative, more expensive treatments are available. We find that private sector physicians are more likely to prescribe the expensive medication. The result holds after controlling for individual-level factors including health indicators based on detailed administrative data, and patient fixed effects. In one of our cases, we further find that the same physicians prescribe different medication when working in different sectors. These results are consistent with higher 2nd degree moral hazard in the private sector.
Subjects: 
healthcare
prescription behaviour
public sector
private sector
moral hazard
JEL: 
I11
H42
I18
Document Type: 
Working Paper
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