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Faculty Matters, April 11, 2019

Faculty Matters, April 11, 2019

April 11, 2019

Sabrina Terrizzi Published in Contemporary Economic Policy

“Estimates of the Price Elasticity of Switching between Branded and Generic Drugs” by

Sabrina Terrizzi, associate professor of economics and business, and Chad Meyerhoefer, professor of economics at Lehigh University, was recently published in the journal Contemporary Economic Policy.

The abstract:  We estimate price elasticities of switching from branded to generic drugs for two widely used drugs: Prozac and Zocor. We find the price elasticity of switching varies by drug and is between 0.01 and 0.10. While elasticity estimates for Zocor are robust to the inclusion of controls for supply-side factors, those for Prozac are not. Our results indicate consumers in managed care plans are most responsive to differences in out-of-pocket (OOP) cost, and we estimate that a 10% increase in the OOP cost difference between Zocor and generic Simvastatin increases an individual’s probability of switching to the generic by approximately 0.3%. This would result in a modest total savings of $36,700 among our sample of 114,218 privately insured Zocor users. Our finding that individuals are relatively unresponsive to the lower prices caused by generic introduction implies that policies targeting supply-side behavior are likely to have a larger effect on generic uptake than price-based inducements. If generic-uptake did occur immediately within the first 18months after generic introduction, the total savings among individuals and insurance companies within our sample would be approximately 7 million for Zocor and $255,000 for Prozac. (JELI11, I18)

 

Husic Invited to Speak at Science Symposium

Diane Husic, dean of the School of Natural and Health Sciences was an invited speaker for the symposium “Working at the Interface of Science and Policy”, for the Connecting Society with Science: How can scientists better communicate with the public, a Pennsylvania Academy of Science Symposium held at Cedar Crest College on March 30, 2019.

 

News from Dana S. Dunn

Dana S. Dunn, professor and chair of the department of psychology, recently conducted an Academic Program Review (APR) at the Department of Psychology at Indiana University of Pennsylvania (IUP) in Indiana, Pennsylvania. Dunn met with members of the department, students, and administrators to examine and consult about program changes over the last five years. He has done 47 APRs to date.

Dunn also attended consolidated meetings at the American Psychological Association in Washington, DC. Dunn, a member of the Board of Education Affairs (BEA), represents issues of precollege and undergraduate education in psychology. Dunn's elected term runs from 2017 to the end of 2019.

The Chronicle of Higher Education published “The Extra-Credit Question: Should You Offer It or Resist It?” by Dunn and colleague Jane S. Halonen, professor of psychology at the University of West Florida in its April 3, 2019 edition.