Pharmaceutical Company Payments to Medical Doctors and County-Level Birth Rate

Date: April 16, 2016

Watch the webinar.

We will explore the health impact of provider-oriented marketing practices by pharmaceutical companies. We analyze payments from pharmaceutical companies to doctors other than those for research and returns on investments. These are mostly small payments for food, travel, and speaking with other doctors about the pharmaceuticals being prescribed. The payments are public data available at the payment-level with detail about the pharmaceutical company, the doctor being paid, and the size and form of the payment. We aggregate the payments by the doctor paid to the county-level to model changes in average birth weight (grams) and the rate of low birth weight infants (% under 2500 grams) as published by the CDC. Since there is only one year of pharmaceutical payments data available at the present time, we use a straight-forward least squares model with spatially corrected standard errors controlling for economic and demographic factors.

Presented by:
Jason Parker is a research associate at Michigan State University. Jason's research interests are Applied Microeconomics and Econometrics. He received his PhD from University of Texas Dallas.
Scott Loveridge is Professor of Agricultural, Food, and Resource Economics at Michigan State University.



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