Mariana Carrera, Montana State University

Paper: Do Physicians Follow the Golden Rule? Evidence and Implications from Physicians’ Self-Prescriptions

Abstract: Using data on prescriptions for cholesterol-lowering drugs (statins), we compare the treatments chosen by Danish physicians for their own use versus for their patients. Controlling for income and health characteristics, physicians are more likely to use newer, more potent statins, contrary to government guidelines recommending an older, less expensive one. Physicians who personally use statins also adjust prescribing more quickly when guidelines change following a patent expiration. These patterns suggest imperfect agency and inattention. We estimate physicians’ willingness-to-pay for additional statin potency and show that prescribing guidelines may reduce welfare by inducing underutilization of treatments physicians themselves perceive as cost-effective.