Santerre
1
Chapter 14
READINGS
Acs, Zoltan J., and David B. Audretsch. “Innovation in Large and Small Firms: An
Empirical Analysis.” American Economic Review 78 (September 1988), pp. 678–90.
———. “Innovation, Market Structure, and Firm Size.” Review of Economics and
Statistics 69 (November 1987), pp. 567–74.
Berndt, Ernst B. “Pharmaceuticals in U.S. Health Care: Determinants of Quantity and
Price.” Journal of Economic Perspectives 16 (fall 2002), pp. 45–66.
Boston Consulting Group. The Changing Environment for U.S. Pharmaceuticals.
Boston: Boston Consulting Group, 1993.
Carroll, Norman V., and Alan P. Wolfgang. “Risks, Benefits, and Generic
Substitution.” Journal of Consumer Affairs 25 (summer 1991), pp. 110–21.
Caves, Richard E., Michael D. Whinston, and Mark A. Hurwitz. “Patent Expiration,
Entry, and Competition in the U.S. Pharmaceutical Industry.” Brookings Papers:
Microeconomics 1991 (1991), pp. 1–66.
Cohen, Joshua P. “PBMs and a Medicare Prescription Drug Benefit.” Food and Drug
Law Journal 55 (2000), pp. 293–476.
Comanor, William S. “The Political Economy of the Pharmaceutical Industry.” Journal
of Economic Literature (September 1986), pp. 1178–1217.
———. “Research and Technical Change in the Pharmaceutical Industry.” Review of
Economics and Statistics (May 1965), pp. 182–90.
Comanor, William S., and Stuart O. Schweitzer. “Pharmaceuticals.” In The Structure
of American Industry, eds. Walter Adams and James Brock. Englewood Cliffs, N.J.:
Prentice Hall, 1995, pp. 177–96.
Cutler, David M., and Mark McClellan. “Is Technological Change in Medical Care
Worth It?” Health Affairs 20 (September/October 2001), pp. 11–29.
DiMasi, Joseph A. “Success Rates for New Drugs Entering Clinical Testing in the
United States.” Clinical and Pharmacology Therapeutics 58 (July 1995), pp. 1–14.
———. “New Drug Innovation and Pharmaceutical Industry Structure: Trends in the
Output of Pharmaceutical Firms.” Drug Information Journal 34 (2000), 1169–94.
DiMasi, Joseph A., Henry G. Grabowski, and John Vernon. “R&D Costs, Innovative
Output and Firm Size in the Pharmaceutical Industry.” International Journal of the
Economics of Business 2 (1995), pp. 201–19.
Santerre
2
Chapter 14
DiMasi, Joseph A., R. W. Hansen and Henry G. Grabowski. “The Price of Innovation:
New Estimates of Drug Development Costs.” Journal of Health Economics 22 (2002),
pp. 151–85.
DiMasi, Joseph A., Ronald W. Hansen, Henry G. Grabowski, and Louis Lasagna.
“Cost of Innovation in the Pharmaceutical Industry.” Journal of Health Economics 10
(1991), pp. 107–42.
Duetsch, Larry L. “Pharmaceuticals: The Critical Role of Innovation.” In Industry
Studies, ed. Larry L. Duetsch. Englewood Cliffs, N.J.: Prentice Hall, 1993.
Egan, John W., Harlow N. Higinbotham, and J. Fred Weston. Economics of the
Pharmaceutical Industry. New York: Praeger, 1982.
Ellison, Sara F., Ian Cockburn, Zvi Griliches, and Jerry Hausman. “Characteristics of
Demand for Pharmaceutical Products: An Examination of Four Cephalosporins.” RAND
Journal of Economics 28 (autumn 1997), pp. 426–46.
Federal Trade Commission. “Merck Settles FTC Charges That Its Acquisition of
Medco Could Cause Higher Prices and Reduced Quality for Prescription Drugs.” Press
release (August 27, 1998), http://www. ftc.gov.
Frech, H. E., III. “The Competitive Revolution.” Regulation (summer 2002), pp. 52–
57.
Frech, H. E., III., and Richard D. Miller. “The Effects of Pharmaceutical Consumption
and Obesity on the Quality of Life in the Organization of Economic Cooperation and
Development (OECD) Countries.” Pharmacoeconomics 22 (supplement, 2004), pp. 25–
36.
Giaccotto, Carmelo, Rexford E. Santerre, and John A. Vernon. “Drug Prices and
Research and Development Investment Behavior in the Pharmaceutical Industry.”
Journal of Law and Economics 48 (April 2005), pp. 195–214.
Grabowski, Henry G. “An Analysis of U.S. International Competitiveness in
Pharmaceuticals.” Managerial and Decision Economics 10 (March 1989), pp. 27–33.
———. “The Determinants of Industrial Research and Development: A Study of the
Chemical, Drug and Petroleum Industries.” Journal of Political Economy (March–April
1968), pp. 292–305.
Grabowski, Henry G., and John M. Vernon. “Brand Loyalty, Entry, and Price
Competition in Pharmaceuticals after the 1984 Drug Act.” Journal of Law and
Economics 35 (October 1992), pp. 331–50.
———. “A New Look at the Returns and Risks to Pharmaceutical R&D.”
Management Science 36 (July 1990), pp. 804–21.
Santerre
3
Chapter 14
———. “Longer Patents for Lower Imitation Barriers: The 1984 Drug Act.” American
Economic Review Papers and Proceedings 76 (May 1986), pp. 195–98.
———. The Regulation of Pharmaceuticals: Balancing the Benefits and Risks.
Washington, D.C.: American Enterprise Institute, 1983.
———. “The Determinants of Research and Development Expenditures in the
Pharmaceutical Industry.” In Drugs and Health, ed. Robert Helms. Washington, D.C.:
American Enterprise Institute, 1981, pp. 3–20.
Greer, Douglas F. Industrial Organization and Public Policy. New York: Macmillan,
1992.
Henderson, Rebecca, and Ian Cockburn. “Scale, Scope and Spillovers: The
Determinants of Research Productivity in Drug Discovery.” RAND Journal 27 (spring
1996), pp. 32–59.
Hurwitz, Mark A., and Richard E. Caves. “Persuasion or Information? Promotion and
the Shares of Brand Name and Generic Pharmaceuticals.” Journal of Law and Economics
31 (October 1988), pp. 299–320.
Langowitz, Nan S., and Samuel B. Graves. “Innovative Productivity in Pharmaceutical
Firms.” Research Technology Management 35 (March–April 1992), pp. 39–41.
Leffler, Keith B. “Persuasion or Information? The Economics of Prescription Drug
Advertising.” Journal of Law and Economics 24 (April 1981), pp. 45–74.
Lichtenberg, Frank R. “The Impact of New Drug Launches on Longevity: Evidence
from Longitudinal, Disease-Level Data from 52 Countries, 1982–2001.” International
Journal of Health Care Finance and Economics 5 (2005), pp. 47–73.
———. “Are the Benefits of New Drugs Worth Their Cost? Evidence from the 1996
MEPS.” Health Affairs 20 (September/October 2001), pp. 241–51.
Lu, Z. John, and William S. Comanor. “Strategic Pricing and New Pharmaceuticals.”
Mimeo, University of California at Santa Barbara, 1994.
Mansfield, Edwin. Industrial Research and Technological Innovation. New York: W.
W. Norton, 1968.
McRae, James J., and Francis Tapon. “Some Empirical Evidence on Post-Patent
Barriers to Entry in the Canadian Pharmaceutical Industry.” Journal of Health Economics
4 (1985), pp. 43–61.
Moore, Stephen D. “Glaxo, SmithKline Renew Their Rivalry in Medicines Used to
Prevent Vomiting.” The Wall Street Journal, November 19, 1993, p. B4D.
Santerre
4
Chapter 14
Mosby Medical Encyclopedia. New York: C. V. Mosby, 1992.
Office of Technology Assessment. Pharmaceutical R and D: Costs, Risks and
Rewards. OTA-11-522. Washington, D.C.: U.S. Government Printing Office, February
1993.
Pear, Robert. “Clinton Backs Off Drug Price Limits.” New York Times, as printed by
San Jose Mercury News, May 17, 1993.
Peltzman, Sam. Regulation of Pharmaceutical Innovation: The 1962 Amendments.
Washington, D.C.: American Enterprise Institute, 1974.
Pharmaceutical Research and Manufacturers of America (PhRMA). Industry Profile.
Washington, D.C.: PhRMA, 2002.
Philipson, Tomas J., Ernst R. Berndt, Adrian H. B. Gottschalk, and Matthew W.
Strobeck. “Assessing the Safety and Efficacy of the FDA: The Case of the Prescription
Drug User Fee Acts.” NBER Working Paper 11724, National Bureau of Economic
Research, October 2005.
Price Waterhouse. Financial Trends in the Pharmaceutical Industry and Projected
Effects of Recent Federal Legislation. Report prepared for the Pharmaceutical
Manufacturers Association, October 21, 1993.
PricewaterhouseCoopers. “Study of Pharmaceutical Benefit Management.” HCFA
Contract
No.
500-97-0399/0097,
June
2001,
http://www.pcmanet.org/research/ostudies/hcfastudy.pdf.
Reichert, Janice M., Jennifer Chee, and Claire S. Kotzampaltiris. “The Effects of the
Prescription Drug User Fee Act and the Food and Drug Admisistration Modernization
Act on the Development and Approval of Therapeutic Medicines.” Drug Information
Journal 32 (2001), pp. 85–94.
Reiffen, David, and Michael R. Ward. “Generic Drug Industry Dynamics.” Review of
Economics and Statistics 87 (February 2005), pp. 37–49.
Rizzo, John A. “Advertising and Competition in the Ethical Pharmaceutical Industry:
The Case of Antihypertensive Drugs.” Journal of Law and Economics 42 (April 1999),
pp. 89–116.
Santerre, Rexford E. and John A. Vernon. “Assessing Consumer Gains from a Drug
Price Control Policy in the U.S.” Southern Economics Journal (July 2006).
Scherer, F. M. “Pricing, Profits, and Technological Progress in the Pharmaceutical
Industry.” Journal of Economic Perspectives 7 (summer 1993), pp. 97–115.
Santerre
5
Chapter 14
Scherer, F. M., and David Ross. Industrial Market Structure and Economic
Performance. Boston: Houghton Mifflin, 1990.
Schmalensee, Richard. “Product Differentiation Advantages of Pioneering Brands.”
American Economic Review 72 (June 1982), pp. 349–65.
Schnee, Jerome. “Innovation and Discovery in the Ethical Pharmaceutical Industry.”
Chapter 8 in Research and Innovation in the Modern Corporation, eds. Edwin Mansfield,
John Rapaport, Jerome Schnee, Samuel Wagner, and Michael Hamburger. New York: W.
W. Norton, 1971.
Schumpeter, Joseph. Capitalism, Socialism and Democracy. New York: Harper, 1950.
Schwartzman, David. Innovation in the Pharmaceutical Industry. Baltimore: Johns
Hopkins University Press, 1976.
Statman, Meir. Competition in the Pharmaceutical Industry: The Declining
Profitability of Drug Innovation. Washington, D.C.: American Enterprise Institute, 1983.
Tanouye, Elyse. “Heartburn Drug Makers Feel Judge’s Heat.” The Wall Street Journal,
October 16, 1995, p. B8.
Tanouye, Elyse, and Thomas M. Burton. “More Firms ‘Switch’ Prescription Drugs to
Give Them Over-the-Counter Status.” The Wall Street Journal, July 29, 1993, p. B1.
Temin, Peter. “Realized Benefits from Switching Drugs.” Journal of Law and
Economics 35 (October 1992), pp. 351–69.
———. Taking Your Medicine: Drug Regulation in the United States. Cambridge,
Mass.: Harvard University Press, 1980.
Vernon, John A. “Examining the Link between Price Regulation and Pharmaceutical
R&D Investment.” Health Economics 14 (2005), pp. 1–16.
Virts, John R., and J. Fred Weston. “Expectations and the Allocation of Research and
Development Resources.” In Drugs and Health, ed. Robert Helms. Washington, D.C.:
American Enterprise Institute, 1981, pp. 21–45.
Weidenbaum, Murray. “Are Drug Prices Too High?” Public Interest 112 (summer
1993), pp. 84–89.
Wiggins, Steven N., and Robert Maness. “Price Competition in Pharmaceuticals: The
Case of Anti-Infectives.” Economic Inquiry 42 (April 2004), pp. 247–63.