Template-Type: ReDIF-Paper 1.0 Author-Name: Elina Jussila Author-Name-First: Elina Author-Name-Last: Jussila Author-Email: elina.jussila@tuni.fi Author-Workplace-Name: Tampere University and Finnish Centre of Excellence in Tax Systems Research (FIT) Author-Name: Kaisa Kotakorpi Author-Name-First: Kaisa Author-Name-Last: Kotakorpi Author-Email: kaisa.kotakorpi@tuni.fi Author-Workplace-Name: Tampere University, Finnish Centre of Excellence in Tax Systems Research (FIT), VATT Institute for Economic Research and CESifo Author-Name: Jouko Verho Author-Name-First: Jouko Author-Name-Last: Verho Author-Email: jouko.verho@vatt.fi Author-Workplace-Name: VATT Institute for Economic Research, Finnish Centre of Excellence in Tax Systems Research (FIT) and CESifo Title: Prescription behavior of physicians in the public and private sector Abstract: We analyze prescription behavior of physicians in the public and private sector. We study two major diseases for which an effective, widely accepted low-cost treatment and alternative, more expensive treatments are available. We find that private sector physicians are more likely to prescribe the expensive medication. The result holds after controlling for individual-level factors including health indicators based on detailed administrative data, and patient fixed effects. In one of our cases, we further find that the same physicians prescribe different medication when working in different sectors. These results are consistent with higher 2nd degree moral hazard in the private sector. Length: 31 pages Creation-Date: 2022-12 Publication-Status: Published in FIT Working Paper Series, Finnish Center of Excellence in Tax Systems Research File-URL: https://verotutkimus.fi/verotutkimus/wp-content/uploads/2022/12/FIT-WP5-Prescription-behavior-of-physicians-in-the-public-and-private-sector-201222-3.pdf File-Format: Application/pdf File-Function: First version, 2022 Number: 5 Classification-JEL: I11, H42, I18 Keywords: taxation, emigration Handle: RePEc:fit:wpaper:5