Work

Tough versus soft regulations to promote generic medications in Italy

Year: 2025

Type: article

Abstract: This paper investigates the effects of regulations aiming to optimise the multi-agency relationships, with a focus on the prescription choice between generic versus branded medications. In 2012, Italian legislators introduced two laws targeting general practitioners prescription behaviour, a soft (recommendations) law followed by a hard (mandatory) law to promote generic medication. We implement a regression discontinuity in time framework and an event study to quarterly administrative data for individuals with chronic kidney disease linked to data from their general practitioners in Emilia-Romagna, Italy. The results indicate that the policies were effective, but had modest effects on increasing the prescription of generic medications. Hard laws seem to have played a key role in driving this change. Heterogeneity checks provide evidence that less competition among GPs and interaction with specialists increased generic medication prescriptions.

Source: The European Journal of Health Economics

DOI: 10.1007/s10198-025-01826-y

Authors: Aarushi Dhingra, Gianluca Fiorentini, Ayman Fouda, Naomi Moy

Institutions: University of Bologna, Management Center Innsbruck, Princess Alexandra Hospital

Language: English

Topic: Pharmaceutical Economics and Policy

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Good health and well-being, Peace, justice, and strong institutions

Open Access status: hybrid

Estimated APC paid: $4,790