NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Is Drug Coverage a Free Lunch? Cross-Price Elasticities and the Design of Prescription Drug Benefits

Martin Gaynor, Jian Li, William B. Vogt

NBER Working Paper No. 12758
Issued in December 2006

---- Acknowledgements -----

We are greatly indebted to the NBER for the use of the Medstat data, and we express our sincere thanks to Ms. Jean Roth for her kind assistance. We are grateful for comments from Roger Feldman, Jonathan Gruber, Sean Nicholson, Mike Chernew, Avi Dor, Tomas Philipson and participants at the 2005 Annual Health Economics Conference, the Spring 2005 NBER Health Care Program Meeting, and the 2006 Annual Meeting of American Society of Health Economists in Madison. The usual caveat applies. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.

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