Deadweight loss of bacterial resistance due to overtreatment
Widespread use of antibiotics is considered the major driving force behind the development of antibiotic resistance. The benefits of exceeding the welfare-maximizing level of antibiotic use are below the costs of resistance created by this excess quantity of antibiotics used, thereby resulting in a welfare deadweight loss. This paper uses a simple economic model to examine the theoretical and empirical aspects of the welfare loss generated by resistance and analyzes its policy implications. The annual deadweight loss associated with outpatient prescriptions for amoxicillin in the United States is estimated at $225 million. Published in 2002 by John Wiley & Sons, Ltd.
Volume (Year): 12 (2003)
Issue (Month): 2 ()
|Contact details of provider:|| Web page: http://www3.interscience.wiley.com/cgi-bin/jhome/5749|
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.:
- Mark Johnston & Richard Zeckhauser, 1991. "The Australian Pharmaceutical Subsidy Gambit: Transmuting Deadweight Loss and Oligopoly Rents to Consumer Surplus," NBER Working Papers 3783, National Bureau of Economic Research, Inc.
- Kenneth Elzinga & David Mills, 1997. "The Distribution and Pricing of Prescription Drugs," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 4(3), pages 287-300.
- James R. Hines, 1999.
"Three Sides of Harberger Triangles,"
Journal of Economic Perspectives,
American Economic Association, vol. 13(2), pages 167-188, Spring.
- Ellison, S & Cockburn, I & Griliches, A & Hausman, J, 1996.
"Characteristics of Demand for Pharmaceutical Products : an Examination of four Cephalosporins,"
96-24, Massachusetts Institute of Technology (MIT), Department of Economics.
- Sara Ellison Fisher & Iain Cockburn & Zvi Griliches & Jerry Hausman, 1997. "Characteristics of Demand for Pharmaceutical Products: An Examination of Four Cephalosporins," RAND Journal of Economics, The RAND Corporation, vol. 28(3), pages 426-446, Autumn.
- Laxminarayan, Ramanan & Brown, Gardner M., 2001.
"Economics of Antibiotic Resistance: A Theory of Optimal Use,"
Journal of Environmental Economics and Management,
Elsevier, vol. 42(2), pages 183-206, September.
- Laxminarayan, Ramanan & Brown, Gardner, 2000. "Economics of Antibiotic Resistance: A Theory of Optimal Use," Discussion Papers dp-00-36, Resources For the Future.
- Michael Baye & Robert Maness & Steven Wiggins, 1997. "Demand systems and the true subindex of the cost of living for pharmaceuticals," Applied Economics, Taylor & Francis Journals, vol. 29(9), pages 1179-1190.
- Scherer, F.M., 2000. "The pharmaceutical industry," Handbook of Health Economics, in: A. J. Culyer & J. P. Newhouse (ed.), Handbook of Health Economics, edition 1, volume 1, chapter 25, pages 1297-1336 Elsevier.
- Coast, J. & Smith, R. D. & Millar, M. R., 1998. "An economic perspective on policy to reduce antimicrobial resistance," Social Science & Medicine, Elsevier, vol. 46(1), pages 29-38, January.
When requesting a correction, please mention this item's handle: RePEc:wly:hlthec:v:12:y:2003:i:2:p:125-138. See general information about how to correct material in RePEc.
If references are entirely missing, you can add them using this form.