This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

Generics and New Goods in Pharmaceutical Price Indexes

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Griliches, Zvi
Cockburn, Iain

Additional information is available for the following registered author(s):

Abstract

When the patent on a drug expires, there are substantial welfare gains to those consumers who, like the Food and Drug Administration, regard branded and generic versions as perfect substitutes. Standard price indexes fail to reflect this, since they treat generics as distinct new goods and 'link them in' with fixed weights. Alternative calculations are presented using detailed data on the wholesale prices of two anti-infective drugs. Significant differences are found: for one of the drugs studied, the standard price index rose by 14 percent over forty-five months following patent expiration, while the authors' preferred alternative index fell by 48 percent. Copyright 1994 by American Economic Association.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://links.jstor.org/sici?sici=0002-8282%28199412%2984%3A5%3C1213%3AGANGIP%3E2.0.CO%3B2-Q&origin=repec
File Format: application/pdf
File Function: full text
Download Restriction: Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Publisher Info
Article provided by American Economic Association in its journal American Economic Review.

Volume (Year): 84 (1994)
Issue (Month): 5 (December)
Pages: 1213-32
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:aea:aecrev:v:84:y:1994:i:5:p:1213-32

Contact details of provider:
Email:
Web page: http://www.aeaweb.org/aer/
More information through EDIRC

Order Information:
Web: http://www.aeaweb.org/subscribe.html

For technical questions regarding this item, or to correct its listing, contact: (Christopher F. Baum).

Related research
Keywords:

Other versions of this item:

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)
  1. Mark Bils & Peter J. Klenow, 2001. "Quantifying Quality Growth," American Economic Review, American Economic Association, vol. 91(4), pages 1006-1030, September. [Downloadable!] (restricted)
    Other versions:
  2. Robert J. Gordon, 2000. "The Boskin Commission Report and its Aftermath," NBER Working Papers 7759, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  3. Steven B. Caudill & Daniel M. Gropper, 1997. "A quality-adjusted price index for mainframe computers," Applied Economics, Taylor and Francis Journals, vol. 29(12), pages 1605-1610, December. [Downloadable!] (restricted)
    Other versions:
  4. Ying Kong, 2004. "The price premium of generic to brand-names and pharmaceutical price index," Applied Economics, Taylor and Francis Journals, vol. 36(7), pages 731-737, April. [Downloadable!] (restricted)
  5. W. Erwin Diewert, 1995. "Price and Volume Measures in the System of National Accounts," NBER Working Papers 5103, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  6. William S. Comanor & Stuart O. Schweitzer, 2007. "Determinants of drug prices and expenditures," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 28(4-5), pages 357-370. [Downloadable!]
  7. Zvi Griliches & Tor Jakob Klette, 1999. "Empirical patterns of firm growth and R&D investment: a quality ladder model interpretation," IFS Working Papers W99/25, Institute for Fiscal Studies. [Downloadable!]
    Other versions:
  8. Michael R. Baye & Robert Maness & Steven N. Wiggins, 1997. "Demand systems and the true subindex of the cost of living for pharmaceuticals," Applied Economics, Taylor and Francis Journals, vol. 29(9), pages 1179-1190, September. [Downloadable!] (restricted)
    Other versions:
  9. Arthur Diamond, 2004. "Zvi Griliches's contributions to the economics of technology and growth," Economics of Innovation and New Technology, Taylor and Francis Journals, vol. 13(4), pages 365-397, June. [Downloadable!] (restricted)
  10. Robert B. Barsky & Lutz Kilian, 2001. "Do We Really Know that Oil Caused the Great Stagflation? A Monetary Alternative," NBER Working Papers 8389, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  11. Robert C. Feenstra & Matthew D. Shapiro, 2003. "Introduction to "Scanner Data and Price Indexes"," NBER Chapters, in: Scanner Data and Price Indexes, pages 1-14 National Bureau of Economic Research, Inc. [Downloadable!]
  12. Nordhaus, William D, 1998. "Quality Change in Price Indexes," Journal of Economic Perspectives, American Economic Association, vol. 12(1), pages 59-68, Winter. [Downloadable!] (restricted)
  13. Glenn Ellison & Sara Fisher Ellison, 2007. "Strategic Entry Deterrence and the Behavior of Pharmaceutical Incumbents Prior to Patent Expiration," NBER Working Papers 13069, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  14. Deaton, Angus, 1998. "Getting Prices Right: What Should Be Done?," Journal of Economic Perspectives, American Economic Association, vol. 12(1), pages 37-46, Winter. [Downloadable!] (restricted)
  15. Ernst R. Berndt & Iain M. Cockburn & Douglas L. Cocks & Arnold Epstein & Zvi Griliches, 1997. "Is Price Inflation Different for the Elderly? An Empirical Analysis of Prescription Drugs," NBER Working Papers 6182, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  16. Gregory Crawford, 2008. "The discriminatory incentives to bundle in the cable television industry," Quantitative Marketing and Economics, Springer, vol. 6(1), pages 41-78, March. [Downloadable!] (restricted)
  17. Shane Greenstein & Ryan C. McDevitt, 2009. "The Broadband Bonus: Accounting for Broadband Internet's Impact on U.S. GDP," NBER Working Papers 14758, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  18. Robert J. Gordon, 2006. "The Boskin Commission Report: A Retrospective One Decade Later," International Productivity Monitor, Centre for the Study of Living Standards, vol. 12, pages 7-22, Spring. [Downloadable!]
    Other versions:
  19. Susan Busch & Ernst Berndt & Richard Frank, 2001. "Creating Price Indexes for Measuring Productivity in Mental Health Care," Forum for Health Economics & Policy, Berkeley Electronic Press, vol. 4(1), pages 1025-1025. [Downloadable!] (restricted)
  20. David E. Lebow & Jeremy B. Rudd, 2001. "Measurement error in the consumer price index: where do we stand?," Finance and Economics Discussion Series 2001-61, Board of Governors of the Federal Reserve System (U.S.). [Downloadable!]
  21. William S. Comanor & Stuart O. Schweitzer, 2007. "Determinants of drug prices and expenditures," Health Economics, John Wiley & Sons, Ltd., vol. 28(4-5), pages 357-370. [Downloadable!]
Statistics
Access and download statistics

Did you know? A tutorial is available.

This page was last updated on 2009-11-16.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.