increase expenditure on the firm's products. Our method accounts for the selection of physicians into payments (which may … result if, e.g., pharmaceutical firms target payments to physicians who see a large number of patients) and our finding holds …

In a pervasive but controversial practice, drug firms frequently make monetary or in-kind payments to physicians in the … physician-drug combination. In an event study, we show that physicians increase prescribing of drugs for which they receive … payments in the months just after payment receipt, with no evidence of differential trends between paid and unpaid physicians …