Claudia Allende Santa Cruz

Claudia Allende is an applied microeconomist. She uses insights and empirical tools from Industrial Organization to study markets where public and private providers compete in an environment with substantial subsidies and regulation. The research projects focus on understanding the effects of public policies in equilibrium, taking into account frictions that are specific to industries like education, health care, and transportation. She collaborates with governments, NGOs, and private companies to build large data and rich sets from administrative records, collect additional data through surveys, and implement randomized control trials. 

King Center Supported Research

2021 - 2022 Academic Year | Junior Faculty Research Grant

Using Technology to Overcome Information Frictions, Expand Access, and Increase Adherence to Pharmaceutical Drugs

Access to affordable drugs and adherence to treatment are first order challenges, particularly in developing countries. We empirically investigate the role of digital platforms in increasing the access and adherence to drugs in pharmaceutical markets through reducing consumer informational and behavioral frictions and search costs. We study the context of Chile. This market has several characteristics common to developing countries, including high drug prices, low penetration of unbranded generics, and large out-of-pocket expenditures in drugs. We partner with a large digital drug marketplace, which provides consumers with information on pharmacy locations and drug prices which is not easily accessible. Using the platform, we plan to (i) document choice frictions in shopping behavior and (ii) to develop field experiments that aid consumer shopping behavior through information about drug availability and prices to deal with search frictions, by informing them about the relative quality of generic and innovator drugs to deal with biases against generics, and by testing other nudges that may increase adherence.