The Effect of Pharmaceutical Utilization and Innovation on Hospitalization and Mortality
AbstractThis paper presents an econometric analysis of the effect of changes in the quantity and type of pharmaceuticals prescribed by physicians in outpatient visits on rates of hospitalization, surgical procedure, mortality, and related variables. It examines the statistical relationship across diseases between changes in outpatient pharmaceutical utilization and changes in inpatient care utilization and mortality during the period 1980-92. The estimates indicate that the number of hospital stays, bed-days, and surgical procedures declined most rapidly for those diagnoses with the greatest increase in the total number of drugs prescribed and the greatest change in the distribution of drugs, by molecule. The estimates imply that an increase of 100 prescriptions is associated with 1.48 fewer hospital admissions, 16.3 fewer hospital days, and 3.36 fewer inpatient surgical procedures. A $1 increase in pharmaceutical expenditure is associated with a $3.65 reduction in hospital care expenditure.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. 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.
Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 5418.
Date of creation: Jan 1996
Date of revision:
Publication status: Published as "The Effect of Government Funding on Private Industrial Research and Development: A Re-Assessment", JINDE, Vol. 36, no. 1 (1987): 97-104. With Donald Siegel, published as "The Effect of Control Changes on the
Note: HE PR
Contact details of provider:
Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Web page: http://www.nber.org
More information through EDIRC
Find related papers by JEL classification:
- I12 - Health, Education, and Welfare - - Health - - - Health Production
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
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.:
- Adam B. Jaffe, 1986.
"Technological Opportunity and Spillovers of R&D: Evidence from Firms' Patents, Profits and Market Value,"
NBER Working Papers
1815, National Bureau of Economic Research, Inc.
- Jaffe, Adam B, 1986. "Technological Opportunity and Spillovers of R&D: Evidence from Firms' Patents, Profits, and Market Value," American Economic Review, American Economic Association, vol. 76(5), pages 984-1001, December.
- James W Hughes & Michael J Moore & Edward A Snyder, 2003.
"Napsterizing Pharmaceuticals: Access, Innovation and Consumer Welfare,"
Levine's Working Paper Archive
618897000000000555, David K. Levine.
- James W. Hughes & Michael J. Moore & Edward A. Snyder, 2002. ""Napsterizing" Pharmaceuticals: Access, Innovation, and Consumer Welfare," NBER Working Papers 9229, National Bureau of Economic Research, Inc.
- Sule Akkoyunlu & Frank R. Lichtenberg & Boriss Siliverstovs & Peter Zweifel, 2009.
"Spurious correlation in estimation of the health production function: A note,"
KOF Working papers
09-227, KOF Swiss Economic Institute, ETH Zurich.
- Sule Akkoyunlu & Frank R. Lichtenberg & Boriss Siliverstovs & Peter Zweifel, 2010. "Spurious correlation in estimation of the health production function: A note," Economics Bulletin, AccessEcon, vol. 30(3), pages 2505-2514.
- Sule Akkoyunlu & Frank R. Lichtenberg & Boriss Siliverstovs & Peter Zweifel, 2009. "Spurious correlation in estimation of the health production function: A note," SOI - Working Papers 0903, Socioeconomic Institute - University of Zurich.
- Paris Cleanthous, 2011. "Evaluating Innovation and Moral Hazard in Pharmaceuticals," University of Cyprus Working Papers in Economics 03-2011, University of Cyprus Department of Economics.
- Frank R. Lichtenberg, 1998.
"The Allocation of Publicly-Funded Biomedical Research,"
NBER Working Papers
6601, National Bureau of Economic Research, Inc.
- Frank R. Lichtenberg, 2001. "The Allocation of Publicly Funded Biomedical Research," NBER Chapters, in: Medical Care Output and Productivity, pages 565-590 National Bureau of Economic Research, Inc.
- Martin Gaynor & Jian Li & William B. Vogt, 2006.
"Is Drug Coverage a Free Lunch? Cross-Price Elasticities and the Design of Prescription Drug Benefits,"
NBER Working Papers
12758, National Bureau of Economic Research, Inc.
- Martin Gaynor & Jian Li & William B. Vogt, 2006. "Is Drug Coverage a Free Lunch? Cross-Price Elasticities and the Design of Prescription Drug Benefits," The Centre for Market and Public Organisation 07/166, Department of Economics, University of Bristol, UK.
- James W. Shaw & William C. Horrace & Ronald J. Vogel, 2002. "The Productivity of Pharmaceuticals in Improving Health: An Analysis of the OECD Health Data," HEW 0206001, EconWPA, revised 11 May 2003.
- Lee G. Branstetter & Chirantan Chatterjee & Matthew Higgins, 2011. "Regulation and Welfare: Evidence from Paragraph IV Generic Entry in the Pharmaceutical Industry," NBER Working Papers 17188, National Bureau of Economic Research, Inc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.