In previous work, we found strong evidence to support the hypothesis that the replacement of older drugs by new drugs resulted in reductions in total medical expenditures. In this study, we update and extend our previous study of the effect of drug age-years since FDA approval-on total medical...

In this paper we analyze the cross-sectional relationship between hospital quality scores calculated by the Joint Commission on the Accreditation of Healthcare Organizations (JCAHO) and risk-adjusted indicators of outcomes and quality--mortality, rates of surgical/medical misadventures, adverse...

Microeconomic theory implies that the demand for prescription drugs should be inversely related to drug prices and directly related to marketing expenditure. Changes in market structure due to patent expiration or other factors is likely to reduce both the average price of a drug and marketing...

Due in large part to intense takeover activity during the 1980s, the extent of American firms' industrial diversification declined significantly during the second half of the decade. The mean number of industries in which firms operated declined 14 percent, and the fraction of single-industry...

We analyze the effect of mergers on various aspects of airline performance during the period 1970-84, using a panel data set constructed by Caves et al. Estimates derived from a simple "matched pairs" statistical model indicate that these mergers were associated with reductions in unit cost. The...

In this paper, we address the issue of spurious correlation in the production of health in a systematic way. Spurious correlation entails the risk of linking health status to medical (and nonmedical) inputs when no links exist. This note first presents the bounds testing procedure as a method to...

Assessing the benefits of medical innovation—its impact on health outcomes—is as important as assessing the costs—its impact on health expenditure. Most formal studies have focused on the expenditure impacts of medical technology, partly because costs are more easily identified and...

We investigate the impact of pharmaceutical innovation on longevity, hospitalization and medical expenditure in Turkey during the period 1999–2010 using longitudinal, disease-level data.

I investigate whether diseases subject to more rapid pharmaceutical innovation experienced greater declines in Americans’ disability days and use of medical services during the period 1997–2010, controlling for several other factors, using data from the Medical Expenditure Panel Survey. The...