NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
loading...

The Impact of Medicare Part D on Pharmaceutical R&D

Margaret E. Blume-Kohout, Neeraj Sood

NBER Working Paper No. 13857
Issued in March 2008
NBER Program(s):The Health Care Program, The Health Economics Program, The Productivity, Innovation, and Entrepreneurship Program

Recent evidence suggests that Medicare Part D has increased prescription drug use among the elderly, and earlier studies have indicated that increasing market size induces pharmaceutical innovation. This paper assesses the impact of Medicare Part D on pharmaceutical research and development (R&D), using time-series data on (a) the number of drugs in clinical development by therapeutic class, and (b) R&D expenditures by firm. We demonstrate that the passage of Medicare Part D was associated with significantly higher pharmaceutical R&D for drug classes with higher Medicare market share, and for firms specializing in higher-Medicare-share drugs.

download in pdf format
   (74 K)

email paper

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w13857

Users who downloaded this paper also downloaded* these:
Duggan and Scott Morton w13917 The Effect of Medicare Part D on Pharmaceutical Prices and Utilization
Acemoglu, Cutler, Finkelstein, and Linn w11949 Did Medicare Induce Pharmaceutical Innovation?
Dranove, Garthwaite, and Hermosilla w20212 Pharmaceutical Profits and the Social Value of Innovation
Blume-Kohout, Kumar, and Sood w15146 Federal Life Sciences Funding and University R&D
Lakdawalla and Yin w15330 Insurer Bargaining and Negotiated Drug Prices in Medicare Part D
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us