The Economic Benefits of Pharmaceutical Innovations: The Case of Cox-2 Inhibitors
AbstractDespite dramatic improvements in medical technology, little attention has been paid to the role of these innovations in improving economic outcomes. This study estimates the labor supply effects of Cox-2 inhibitors, a widely prescribed class of pharmaceuticals used for the treatment of chronic pain and inflammation and primarily marketed under the brand names Vioxx, Celebrex, and Bextra. This paper exploits the removal of Vioxx from the market in 2004 as an exogenous change in drug use. This removal was associated with a 0.35 percentage point decrease in overall labor force participation and $19 billion in lost wages. (JEL I12, J22, L65, O31).
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Bibliographic InfoArticle provided by American Economic Association in its journal American Economic Journal: Applied Economics.
Volume (Year): 4 (2012)
Issue (Month): 3 (July)
Find related papers by JEL classification:
- I12 - Health, Education, and Welfare - - Health - - - Health Production
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
- L65 - Industrial Organization - - Industry Studies: Manufacturing - - - Chemicals; Rubber; Drugs; Biotechnology
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- The Economic Benefits of Pharmaceutical Innovations: The Case of Cox-2 Inhibitors, C. Garthwaite (2012)
by afinetheorem in A Fine Theorem on 2013-03-20 07:37:41
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