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The Impact of Pharmaceutical Innovation on Disability Days and the Use of Medical Services in the United States, 1997-2010

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  • Frank R. Lichtenberg

Abstract

I investigate whether diseases subject to more rapid pharmaceutical innovation experienced greater declines in Americans' disability days and use of medical services during the period 1997-2010, controlling for several other factors, using data from the Medical Expenditure Panel Survey. The mean number of work loss days, school loss days, and hospital admissions declined more rapidly among medical conditions with larger increases in the mean number of new (post-1990) prescription drugs consumed. The value of reductions in work loss days and hospital admissions attributable to pharmaceutical innovation is estimated to be three times as large as the cost of new drugs consumed.

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  • Frank R. Lichtenberg, 2014. "The Impact of Pharmaceutical Innovation on Disability Days and the Use of Medical Services in the United States, 1997-2010," Journal of Human Capital, University of Chicago Press, vol. 8(4), pages 432-480.
    • Handle: RePEc:ucp:jhucap:doi:10.1086/679110
    DOI: 10.1086/679110
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    Cited by:

    1. Lichtenberg Frank R., 2018. "The Impact of New Drug Launches on Hospitalization in 2015 for 67 Medical Conditions in 15 OECD Countries: A Two-Way Fixed-Effects Analysis," Forum for Health Economics & Policy, De Gruyter, vol. 21(2), pages 1-20, December.
    2. Frank R. LICHTENBERG, 2018. "The Impact of New Drug Launch on Life-Years Lost in 2015 from 19 Types of Cancer in 36 Countries," JODE - Journal of Demographic Economics, Cambridge University Press, vol. 84(3), pages 309-354, September.
    3. Frank R. Lichtenberg, 2021. "Are drug prices subject to creative destruction? Evidence from the US, 1997–2017," Health Economics, John Wiley & Sons, Ltd., vol. 30(8), pages 1910-1932, August.
    4. Katharina E. Blankart & Frank R. Lichtenberg, 2020. "Are patients more adherent to newer drugs?," Health Care Management Science, Springer, vol. 23(4), pages 605-618, December.
    5. Frank R. Lichtenberg, 2019. "How Many Life-Years Have New Drugs Saved? A 3-Way Fixed-Effects Analysis of 66 Diseases in 27 Countries, 2000-2013," NBER Working Papers 25483, National Bureau of Economic Research, Inc.
    6. Frank R. Lichtenberg, 2022. "The effects of dynamic and static competition on prescription drug prices in Denmark, 1997–2017," Journal of Evolutionary Economics, Springer, vol. 32(4), pages 1155-1173, September.
    7. Anna Chorniy & James Bailey & Abdulkadir Civan & Michael Maloney, 2021. "Regulatory review time and pharmaceutical research and development," Health Economics, John Wiley & Sons, Ltd., vol. 30(1), pages 113-128, January.
    8. Katharina E. Blankart & Frank R. Lichtenberg, 2022. "The Effects of Off-label Drug Use on Disability and Medical Expenditure," NBER Working Papers 30440, National Bureau of Economic Research, Inc.
    9. Frank R. Lichtenberg, 2024. "Has pharmaceutical innovation reduced the average cost of U.S. health care episodes?," International Journal of Health Economics and Management, Springer, vol. 24(1), pages 1-31, March.

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