Discussion paper
DP17938 Social environment as a barrier to treatment and innovation adoption
Lung cancer is associated with smoking and is characterized by low treatment rates and research funds. We estimate a model of treatment choice where patients internalize the negative social environment surrounding the disease, basing their treatment decision on the treatment decisions of their reference group. Identification rests on the exogenous variation in the treatment propensity of physicians. Placing all patients in a neighborhood characterized by low social discrimination increases treatment rates by 7% and the use of innovative therapies by 6%. Social effects account for around 4% less research funding for this disease.
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