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The Contribution of Pharmaceutical Innovation to Longevity Growth in Germany and France

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  • Frank Lichtenberg

Abstract

I investigate the contribution of pharmaceutical innovation to recent longevity growth in Germany and France. First, I examine the effect of the vintage of prescription drugs (and other variables) on the life expectancy and age-adjusted mortality rates of residents of Germany, using longitudinal, annual, state-level data during the period 2000-2007. The estimates imply that almost half of the 1.7-year increase in German life expectancy during the period 2000-2007 was due to the replacement of older drugs by newer drugs. Next, I examine the effect of the vintage of chemotherapy treatments on age-adjusted cancer mortality rates of residents of France, using longitudinal, annual, cancer-site-level data during the period 2002-2006. 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.

Suggested Citation

  • Frank Lichtenberg, 2010. "The Contribution of Pharmaceutical Innovation to Longevity Growth in Germany and France," CESifo Working Paper Series 3095, CESifo Group Munich.
  • Handle: RePEc:ces:ceswps:_3095
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    File URL: http://www.cesifo-group.de/DocDL/cesifo1_wp3095.pdf
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    References listed on IDEAS

    as
    1. Christopher J. Ruhm, 2006. "Macroeconomic Conditions, Health and Mortality," Chapters,in: The Elgar Companion to Health Economics, chapter 1 Edward Elgar Publishing.
    2. Frank R. Lichtenberg, 2014. "Has Medical Innovation Reduced Cancer Mortality?," CESifo Economic Studies, CESifo, vol. 60(1), pages 135-177.
    3. Plutarchos Sakellaris & Daniel J. Wilson, 2004. "Quantifying Embodied Technological Change," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 7(1), pages 1-26, January.
    4. Mark Bils, 2004. "Measuring the Growth from Better and Better Goods," NBER Working Papers 10606, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. James Ang & Jakob Madsen, 2015. "Imitation versus innovation in an aging society: international evidence since 1870," Journal of Population Economics, Springer;European Society for Population Economics, vol. 28(2), pages 299-327, April.

    More about this item

    JEL classification:

    • C20 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - General
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • I10 - Health, Education, and Welfare - - Health - - - General
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • L65 - Industrial Organization - - Industry Studies: Manufacturing - - - Chemicals; Rubber; Drugs; Biotechnology; Plastics
    • O00 - Economic Development, Innovation, Technological Change, and Growth - - General - - - General

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