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A large literature in empirical public finance relies on “bunching” to identify a behavioral response to non-linear incentives and to translate this response into an economic object to be used counterfactually. We conduct this type of analysis in the context of prescription drug insurance...
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demand, yet publicly-provided drug coverage typically involves uniform cost-sharing across drugs. We investigate how private … elasticities of demand across more than 150 drugs and across more than 100 therapeutic classes, as well as substantial … consumer cost-sharing for drugs or classes with more elastic demand. Our findings suggest that benefit design may be more …
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