Plausibly Exogenous - Zero Markups (07/24/2021)
LHS Variable
Demand for drugs
RHS Variable
Markups on drugs
Source of Exogenous Variation
Chinese health care reform in which the government mandated zero markups for drugs sold in public hospitals
- Fang, Lei, Shi, and Yi (2021), “Physician-Induced Demand: Evidence from China’s Drug Price Zero-Markup Policy”