Chronic and acute announcement and implementation effects.
Notes: MCBS 2001–2006, weighted. The points represent weighted sample means. Chronic and acute categories are defined by the median assignment rule and correspond to the results in Table 4. The dashed lines show preannouncement trends projected forward. These are obtained by estimating the basic model, Equation 1, without controls. To implement this, I first estimate the coefficients in the basic model from Equation 1. Then I set the announcement and implementation indicators to zero for all observations and compute the predicted values for total prescriptions in each year. Chronic and acute trends have separate y-axes.