Direct and indirect savings from parallel imports in Sweden

Health Economics Review

Table 5 Robustness checks for Oct. 2002–Oct. 2007, estimation results for lnP_it

	IV 2	IV 1 s2	IV 1 s2 cl5	OLS s2	Static OLS s2
lnP _{i, t − 1}	0.9568***	0.9568***	0.9568***	0.9568***
lnP _{i, t − 1}	(0.0055)	(0.0055)	(0.0057)	(0.0055)
D _ PiSubstance_st	−0.0019***	− 0.0017***	− 0.0017***	− 0.0015***	−0.0106**
D _ PiSubstance_st	(0.0007)	(0.0006)	(0.0006)	(0.0005)	(0.0045)
D _ PiE_it	−0.0012	−0.0012*	− 0.0012	−0.0010*	0.0068
D _ PiE_it	(0.0008)	(0.0007)	(0.0007)	(0.0005)	(0.0049)
lnN _ PiSubstance_st	0.0000	0.0001	0.0001	0.0001	0.0057
lnN _ PiSubstance_st	(0.0004)	(0.0004)	(0.0004)	(0.0003)	(0.0057)
lnN _ PiE_it	−0.0012*	−0.0011*	−0.0011*	− 0.0007	0.0298***
lnN _ PiE_it	(0.0007)	(0.0006)	(0.0006)	(0.0005)	(0.0110)
D _ Th_st	−0.0002	−0.0001	− 0.0001	− 0.0002	0.0040
D _ Th_st	(0.0010)	(0.0009)	(0.0009)	(0.0007)	(0.0099)
D _ ThGen_st	−0.0012**	−0.0007	− 0.0007	− 0.0002	− 0.0127***
D _ ThGen_st	(0.0006)	(0.0006)	(0.0006)	(0.0003)	(0.0045)
lnN _ Th_it	−0.0003	−0.0012	− 0.0012	−0.0004	− 0.0049
lnN _ Th_it	(0.0013)	(0.0012)	(0.0013)	(0.0010)	(0.0127)
lnN _ ThGen_st	0.0010	0.0009	0.0009	0.0007	−0.0199**
lnN _ ThGen_st	(0.0008)	(0.0007)	(0.0007)	(0.0006)	(0.0095)
\(d{lnP}_i^{\ast }/ dD\_{PiSubstance}_{st}^{\ast }\)	−0.0671***	−0.0603***	− 0.0603***	− 0.0496***	0.0067
\(d{lnP}_i^{\ast }/ dD\_{PiSubstance}_{st}^{\ast }\)	(0.0165)	(0.0151)	(0.0156)	(0.0129)	(0.0087)
Observations	119,058	119,058	119,058	119,058	119,058
R²	0.9181	0.9181	0.9181	0.9181	0.0201
K-P rk LM	69.1940	72.9573	41.6238
K-P rk LM, p-val.	0.0000	0.0000	0.0000
Hansen J, p-value	0.1496	0.1346	0.1439

Note: See Table 1 for variable definitions. The specifications include product-specific fixed effects and indicator variables for year × month combinations. In the first-stage regressions, data from Oct. 2002–Oct. 2007 and Jan. 2011–Dec. 2017 were used. K-P rk LM refers to the Kleibergen-Paap rk LM statistic, which indicates the strength of the instruments. The null hypothesis in the K-P test is that the model is under-identified. The null hypothesis for the Hansen J test is that the instruments are valid, i.e., uncorrelated with the error term. Standard errors, robust to correlations within substances, are given in parentheses. ***, **, and * indicate that the coefficient is statistically significant different from zero on the 1, 5 and 10% significance levels, respectively. The estimation results for the indicator variables for year × month combinations and for the first-stage regression are available on request

ISSN: 2191-1991