We thank the editors, two anonymous referees, Thomas Hubbard, Scott Stern, Timothy Hannan, Judy Hellerstein, Bill Evans, Seth Sanders, John Rust, Robert Maness, and the participants at the NBER 2003 IO meeting for constructive comments and suggestions. We also thank Kathryn Aikon for helping us interpret the FDA rules, and Catherine Burt for guiding our usage of the NAMCS data. We are very grateful to TNS Media Intelligence/Competitive Media Reporting (CMR) for generously providing the advertising data for this study. All errors remain ours.
The Effect of Prescription Drug Advertising on Doctor Visits
Version of Record online: 28 JUL 2005
Journal of Economics & Management Strategy
Volume 14, Issue 3, pages 701–727, September 2005
How to Cite
Iizuka, T. and Jin, G. Z. (2005), The Effect of Prescription Drug Advertising on Doctor Visits. Journal of Economics & Management Strategy, 14: 701–727. doi: 10.1111/j.1530-9134.2005.00079.x
- Issue online: 28 JUL 2005
- Version of Record online: 28 JUL 2005
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.