Table 4.

Target variables and model specifications

Variable	Type	Specification
No. of different active agents	count data	negative binominal
Share of generic drugs	binominal variable	logit
Drug cost	continuous	glm, log link, gamma variance
Physician expenditures	continuous, peak at zero	two-part model
No. of visits gp	count	negative binominal
No. of visits specialists	count	negative binominal
Total health care cost	continuous	glm, log link, gamma variance

Control variables: Age, gender, deductibles, expenditure in previous year, number of hospital visits/stays, 22 pharmaceutical cost groups to indicate illness