The impact of new drug launches on longevity: evidence from longitudinal disease-level data from 52 countries, 1982-2001
We perform an econometric analysis of the effect of new drug launches on longevity, using data from the IMS Health Drug Launches database and the WHO Mortality Database. Our data cover virtually all of the diseases borne by people in 52 countries during the period 1982-2001, and enable us to control, to an unusually great extent, for the effects of other potential determinants of longevity, e.g. education, income, nutrition, the environment, and lifestyle'. We find that launches of new chemical entities (NCEs) have a strong positive impact on the probability of survival. Launches of (older) drugs that are not NCEs do not increase longevity. NCE launches account for a significant fraction of the long-run increase in longevity in the sample as a whole. Between 1986 and 2000, average life expectancy of the entire population of sample countries increased by almost two years. Our estimates imply that NCE launches accounted for 0.8 years (40%) of the 1986-2000 increase in longevity. The average annual increase in life expectancy of the entire population resulting from NCE launches is .056 years, or 2.93 weeks.
|Date of creation:||Jun 2003|
|Publication status:||published as Frank Lichtenberg, 2005. "The Impact of New Drug Launches on Longevity: Evidence from Longitudinal, Disease-Level Data from 52 Countries, 1982–2001," International Journal of Health Economics and Management, Springer, vol. 5(1), pages 47-73, January.|
|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
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.:
- Lichtenberg, Frank R, 1996. "Do (More and Better) Drugs Keep People Out of Hospitals?," American Economic Review, American Economic Association, vol. 86(2), pages 384-388, May.
- Robert C. Feenstra & Matthew D. Shapiro, 2003. "Scanner Data and Price Indexes," NBER Books, National Bureau of Economic Research, Inc, number feen03-1.
- William D. Nordhaus, 2002.
"The Health of Nations: The Contribution of Improved Health to Living Standards,"
NBER Working Papers
8818, National Bureau of Economic Research, Inc.
- William D. Nordhaus, 2002. "The Health of Nations: The Contribution of Improved Health to Living Standards," Cowles Foundation Discussion Papers 1355, Cowles Foundation for Research in Economics, Yale University.
- Liu, Jin-Tan & Hammitt, James K. & Liu, Jin-Long, 1997. "Estimated hedonic wage function and value of life in a developing country," Economics Letters, Elsevier, vol. 57(3), pages 353-358, December. Full references (including those not matched with items on IDEAS)