Working Paper: CEPR ID: DP17938
Authors: Laura Grigolon; Laura Lasio
Abstract: 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.
Keywords: cancer; innovation; stigma; biased beliefs; patient choice
JEL Codes: C31; I12; O31
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Low social discrimination in neighborhoods (R23) | Increased treatment rates (C22) |
| Low social discrimination in neighborhoods (R23) | Increased use of innovative therapies (O35) |
| Increase in untreated patients share (I14) | Decrease in probability of accessing treatment (I14) |
| Social effects (I14) | Gap in research funding for lung cancer (I24) |
| Mitigating social stigma (Z13) | Additional spending on innovative drugs (H51) |
| Biased beliefs and stigma (D91) | Treatment access and investment in innovation (O35) |