Direct and indirect savings from parallel imports in Sweden

Health Economics Review

Table 6 Robustness checks for Jan. 2011–Dec. 2017, estimation results for lnP_it

	IV 2	IV 1 s2	IV 1 s2 cl5	OLS s2	Static OLS s2
lnP _{i, t − 1}	0.9193***	0.9194***	0.9194***	0.9194***
lnP _{i, t − 1}	(0.0177)	(0.0176)	(0.0202)	(0.0176)
D _ PiSubstance_st	−0.0011	− 0.0012	− 0.0012	−0.0007	− 0.0069
D _ PiSubstance_st	(0.0010)	(0.0009)	(0.0009)	(0.0005)	(0.0070)
D _ PiE_it	−0.0005	−0.0003	− 0.0003	−0.0006	0.0022
D _ PiE_it	(0.0006)	(0.0005)	(0.0005)	(0.0004)	(0.0046)
lnN _ PiSubstance_st	−0.0003	−0.0001	− 0.0001	−0.0001	0.0018
lnN _ PiSubstance_st	(0.0009)	(0.0008)	(0.0009)	(0.0006)	(0.0087)
lnN _ PiE_it	0.0010	0.0009	0.0009	0.0009	0.0161***
lnN _ PiE_it	(0.0009)	(0.0008)	(0.0007)	(0.0007)	(0.0061)
D _ Th_st	0.0021	0.0010	0.0010	−0.0000	−0.0235
D _ Th_st	(0.0020)	(0.0017)	(0.0018)	(0.0011)	(0.0209)
D _ ThGen_st	0.0004	0.0003	0.0003	0.0000	0.0115
D _ ThGen_st	(0.0012)	(0.0012)	(0.0014)	(0.0010)	(0.0119)
lnN _ Th_it	−0.0037**	−0.0025**	− 0.0025*	−0.0011	− 0.0183*
lnN _ Th_it	(0.0015)	(0.0012)	(0.0014)	(0.0009)	(0.0101)
lnN _ ThGen_st	−0.0010	−0.0012	− 0.0012	−0.0011	− 0.0091
lnN _ ThGen_st	(0.0017)	(0.0015)	(0.0017)	(0.0013)	(0.0128)
\(d{lnP}_i^{\ast }/ dD\_{PiSubstance}_{st}^{\ast }\)	−0.0152	−0.0132	− 0.0132	−0.0085	0.0055
\(d{lnP}_i^{\ast }/ dD\_{PiSubstance}_{st}^{\ast }\)	(0.0122)	(0.0112)	(0.0128)	(0.0107)	(0.0104)
Observations	89,292	89,292	89,292	89,292	89,292
R²	0.8830	0.8831	0.8831	0.8831	0.0122
K-P rk LM	72.1080	65.6942	24.1794
K-P rk LM, p-val.	0.0000	0.0000	0.0000
Hansen J, p-value	0.1830	0.1639	0.1950

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 October 2002–October 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