Liquidity Constraints and Demand for Healthcare: Evidence from Danish Welfare Recipients
Publikation: Working paper › Forskning
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Liquidity Constraints and Demand for Healthcare: Evidence from Danish Welfare Recipients. / Lyngse, Frederik Plesner.
2020.Publikation: Working paper › Forskning
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TY - UNPB
T1 - Liquidity Constraints and Demand for Healthcare: Evidence from Danish Welfare Recipients
AU - Lyngse, Frederik Plesner
PY - 2020
Y1 - 2020
N2 - Are low-income individuals relying on government transfers liquidity constrained by the end of the month to a degree that they postpone medical treatment? I investigate this question using Danish administrative data comprising the universe of welfare recipients and the filling of all prescription drugs. I find that on transfer income payday, recipients have a 52% increase in the propensity to fill a prescription. By separating prophylaxis drugs used to treat chronic conditions, where the patient can anticipate the need to fill the prescription, e.g. cholesterol-lowering statins, I find an increase of up to 99% increase on payday. Even for drugs used to treat acute conditions, where timely treatment is essential, I find a 22% increase on payday for antibiotics and a 5-8% decrease in the four days preceding payday. Lastly, exploiting the difference in day the doctor write the prescription and the day the patient fill it, I show that liquidity constraints is the key operating mechanism for postponing antibiotic treatment.
AB - Are low-income individuals relying on government transfers liquidity constrained by the end of the month to a degree that they postpone medical treatment? I investigate this question using Danish administrative data comprising the universe of welfare recipients and the filling of all prescription drugs. I find that on transfer income payday, recipients have a 52% increase in the propensity to fill a prescription. By separating prophylaxis drugs used to treat chronic conditions, where the patient can anticipate the need to fill the prescription, e.g. cholesterol-lowering statins, I find an increase of up to 99% increase on payday. Even for drugs used to treat acute conditions, where timely treatment is essential, I find a 22% increase on payday for antibiotics and a 5-8% decrease in the four days preceding payday. Lastly, exploiting the difference in day the doctor write the prescription and the day the patient fill it, I show that liquidity constraints is the key operating mechanism for postponing antibiotic treatment.
KW - health behavior
KW - health insurance
KW - health and inequality
KW - prescription drugs
KW - payday
KW - health behavior
KW - health insurance
KW - health and inequality
KW - prescription drugs
KW - payday
M3 - Working paper
T3 - CEBI Working Paper Series
BT - Liquidity Constraints and Demand for Healthcare: Evidence from Danish Welfare Recipients
ER -
ID: 254665639