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Contribution of Pharmaceutical Innovation to Longevity Growth in Germany and France, 2001-7

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  • Frank R. Lichtenberg

    (Graduate School of Business, Columbia University, New York, NY, USA; National Bureau of Economic Research, Cambridge, MA, USA)

Abstract

This paper investigates the contribution of pharmaceutical innovation to recent longevity growth in Germany and France. The effect of the vintage of prescription drugs (and other variables) on the life expectancy and age-adjusted mortality rates of residents of Germany is examined, using longitudinal, annual, state-level data during the period 2001-7. The estimates imply that about one-third of the 1.4-year increase in German life expectancy during the period 2001-7 was due to the replacement of older drugs by newer drugs. The effect of the vintage of chemotherapy treatments on age-adjusted cancer mortality rates of residents of France is also investigated, using longitudinal, annual, cancer-site-level data during the period 2002-6. The estimates imply that chemotherapy innovation accounted for at least one-sixth of the decline in French cancer mortality rates, and may have accounted for as much as half of the decline.

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Bibliographic Info

Article provided by Springer Healthcare | Adis in its journal PharmacoEconomics.

Volume (Year): 30 (2012)
Issue (Month): 3 ()
Pages: 197-211

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Handle: RePEc:wkh:phecon:v:30:y:2012:i:3:p:197-211

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Web page: http://pharmacoeconomics.adisonline.com/

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Keywords: Drug-utilisation; Health-policy; Mortality; Research-and-development.;

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  1. Bahk, Byong-Hong & Gort, Michael, 1993. "Decomposing Learning by Doing in New Plants," Journal of Political Economy, University of Chicago Press, vol. 101(4), pages 561-83, August.
  2. Kevin M. Murphy & Robert H. Topel, 2005. "The Value of Health and Longevity," NBER Working Papers 11405, National Bureau of Economic Research, Inc.
  3. Gene M. Grossman & Elhanan Helpman, 1993. "Innovation and Growth in the Global Economy," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262570971, December.
  4. Christopher J. Ruhm, 2004. "Macroeconomic Conditions, Health and Mortality," NBER Working Papers 11007, National Bureau of Economic Research, Inc.
  5. Paul M Romer, 1999. "Endogenous Technological Change," Levine's Working Paper Archive 2135, David K. Levine.
  6. Frank R. Lichtenberg, 2009. "The Quality of Medical Care, Behavioral Risk Factors, and Longevity Growth," NBER Working Papers 15068, National Bureau of Economic Research, Inc.
  7. Frank R. Lichtenberg, 2010. "Has medical innovation reduced cancer mortality?," NBER Working Papers 15880, National Bureau of Economic Research, Inc.
  8. Plutarchos Sakellaris & Daniel J. Wilson, 2001. "Quantifying embodied technological change," Working Paper Series 2001-16, Federal Reserve Bank of San Francisco.
  9. Mark Bils, 2004. "Measuring the Growth from Better and Better Goods," NBER Working Papers 10606, National Bureau of Economic Research, Inc.
  10. Hulten, Charles R, 1992. "Growth Accounting When Technical Change Is Embodied in Capital," American Economic Review, American Economic Association, vol. 82(4), pages 964-80, September.
  11. Hercowitz, Zvi, 1998. "The 'embodiment' controversy: A review essay," Journal of Monetary Economics, Elsevier, vol. 41(1), pages 217-224, February.
  12. Stefan Hupfeld, 2011. "Non-monotonicity in the longevity–income relationship," Journal of Population Economics, Springer, vol. 24(1), pages 191-211, January.
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Cited by:
  1. Frank R. Lichtenberg, 2012. "Pharmaceutical Innovation and Longevity Growth in 30 Developing and High-income Countries, 2000-2009," NBER Working Papers 18235, National Bureau of Economic Research, Inc.
  2. Lichtenberg Frank R., 2013. "The Effect of Pharmaceutical Innovation on Longevity: Patient Level Evidence from the 1996–2002 Medical Expenditure Panel Survey and Linked Mortality Public-use Files," Forum for Health Economics & Policy, De Gruyter, vol. 16(1), pages 1-33, January.

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