the distortionary effects of government procurement evidence from medicaid prescription drug purchasing mark duggan and fiona m scott morton august 2005 authors are grateful to merck corporation for generously allowing us access ims data we also thank permission use their national sales first author thanks robert wood johnson alfred p sloan foundations support second was partially supported by nsf grant 0111885 sarah bohn julian cristia tamara hayford jillian popadak sabrina yusuf excellent research assistance alberto abadie christopher adams leemore dafny edward glaeser phil haile ginger jin andrei shleifer three anonymous referees seminar participants at cornell university federal trade commission hec montreal massachusetts institute technology michigan northwestern stanford helpful comments views expressed in paper those not necessarily any sponsoring organization contact information follows economics department maryland 3115l tydings hall college park md 20742 econ umd edu yale school management 55 hillhouse avenue new haven ct 06520 scottmorton