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Economics of Antibiotic Resistance: A Theory of Optimal Use

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Author Info
Laxminarayan, Ramanan () (Resources for the Future)
Brown, Gardner

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Abstract

In recent years bacteria have become increasingly resistant to antibiotics, leading to a decline in the effectiveness of antibiotics in treating infectious disease. This paper uses a framework based on an epidemiological model of infection in which antibiotic effectiveness is treated as a nonrenewable resource. In the model presented, bacterial resistance (the converse of effectiveness) develops as a result of selective pressure on nonresistant strains due to antibiotic use. When two antibiotics are available, the optimal proportion and timing of their use depends precisely on the difference between the rates at which bacterial resistance to each antibiotic evolves and on the differences in their pharmaceutical costs. Standard numerical techniques are used to illustrate cases for which the analytical problem is intractable.

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Paper provided by Resources For the Future in its series Discussion Papers with number dp-00-36.

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Date of creation: 01 Sep 2000
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Handle: RePEc:rff:dpaper:dp-00-36

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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. Gardner Brown & Ramanan Laxminarayan, 1998. "Economics of Antibiotic Resistance," Discussion Papers in Economics at the University of Washington 0060, Department of Economics at the University of Washington. [Downloadable!]
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  2. Tomas Philipson, 1999. "Economic Epidemiology and Infectious Diseases," NBER Working Papers 7037, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  3. Hartwick, John M, 1978. "Exploitation of Many Deposits of an Exhaustible Resource," Econometrica, Econometric Society, vol. 46(1), pages 201-17, January. [Downloadable!] (restricted)
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  4. Weitzman, Martin L., 1976. "The optimal development of resource pools," Journal of Economic Theory, Elsevier, vol. 12(3), pages 351-364, June. [Downloadable!] (restricted)
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(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. Amit Batabyal & Peter Nijkamp, 2005. "Alternate Strategies for Managing Resistance to Antibiotics and Pesticides," ERSA conference papers ersa05p161, European Regional Science Association. [Downloadable!]
  2. David H. Howard, 2004. "Resistance-induced antibiotic substitution," Health Economics, John Wiley & Sons, Ltd., vol. 13(6), pages 585-595. [Downloadable!]
  3. Laxminarayan, Ramanan, 2001. "Bacterial Resistance and the Optimal Use of Antibiotics," Discussion Papers dp-01-23, Resources For the Future. [Downloadable!]
  4. Ramanan Laxminarayan & R. Simpson, 2002. "Refuge Strategies for Managing Pest Resistance in Transgenic Agriculture," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 22(4), pages 521-536, August. [Downloadable!] (restricted)
  5. Gerard Gaudet & Michel Moreaux & Stephen W. Salant, 2001. "Intertemporal Depletion of Resource Sites by Spatially Distributed Users," American Economic Review, American Economic Association, vol. 91(4), pages 1149-1159, September. [Downloadable!] (restricted)
  6. Elamin H. Elbasha, 2003. "Deadweight loss of bacterial resistance due to overtreatment," Health Economics, John Wiley & Sons, Ltd., vol. 12(2), pages 125-138. [Downloadable!]
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