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About the Author(s)

Craig Garthwaite

Craig Garthwaite is an associate professor of strategy and the director of the Program on Healthcare at Northwestern University's Kellogg School of Management. An applied microeconomist, he studies the effects of government policies and social phenomena, focusing on the health and biopharmaceutical sectors. Recent work has focused on private sector effects of the Affordable Care Act. In prior work, he has examined the impact of government cash assistance programs on health. He is an NBER research associate and is affiliated with the bureau's Health Care Program.

Garthwaite also studies pricing and innovation in the biopharmaceutical sector. In this area he has examined the effect of expanded patent protection on pricing in the Indian pharmaceutical market, the innovation response of United States pharmaceutical firms to increases in demand, and the relationship between health insurance expansions and high drug prices. His research has appeared in journals such as The Quarterly Journal of Economics, American Economic Review, The Review of Economics and Statistics, and Health Affairs. In 2015, he was named one of Poet and Quants 40 Best under 40 Business School Professors.

Garthwaite received a BA and a Master's in Public Policy from the University of Michigan and his PhD in economics from the University of Maryland. Prior to receiving his PhD, he served as director of research for the Employment Policies Institute and in other public policy positions.


1. D. Acemoglu and J. Linn, "Market Size in Innovation: Theory and Evidence From the Pharmaceutical Industry," NBER Working Paper 10038, October 2003, and The Quarterly Journal of Economics, 119(3), 2004, pp. 1049–90; A. Finkelstein, "Health Policy and Technological Change: Evidence from the Vaccine Industry," NBER Working Paper 9460, January 2003, and published as "Static and Dynamic Effects of Health Policy: Evidence from the Vaccine Industry," The Quarterly Journal of Economics, 119(2), 2004, pp. 527–64; M. Blume-Kohout and N. Sood, "The Impact of Medicare Part D on Pharmaceutical R&D," NBER Working Paper 13857, March 2008, and published as "Market Size and Innovation: Effects of Medicare Part D on Pharmaceutical Research and Development," Journal of Public Economics, 2013, 97, pp. 327–36; P. DuBois, O. Mouzon, F. Scott-Morton, and P. Seabright, "Market Size and Pharmaceutical Innovation," The RAND Journal of Economics, 46(4), 2015, pp. 844–71.   Go to ⤴︎
2. A. Chandra, C. Garthwaite, and A. Stern, "Characterizing the Drug Development Pipeline for Precision Medicines," chapter in forthcoming book, E. Berndt, D. Goldman, and J. Rowe, eds., Economic Dimensions of Personalized and Precision Medicine, University of Chicago Press.   Go to ⤴︎
3. S. Amur, "Biomarker Terminology: Speaking the Same Language," available at  Go to ⤴︎
4. N. Bagley, B. Berger, A. Chandra, C. Garthwaite, and A. Stern, "The Orphan Drug Act at 35: Observations and an Outlook for the 21st Century," forthcoming, NBER Innovation Policy and the Economy, Vol. 19.   Go to ⤴︎
5. A. Stern, B. Alexander, and A. Chandra, "How Economics Can Shape Precision Medicines," Science, 335(6330), 2017, pp. 1131–3.   Go to ⤴︎
6. P. Bach, "Indication-Specific Pricing for Cancer Drugs," Journal of the American Medical Association, 312(16), 2014, pp. 1629–30.   Go to ⤴︎
7. Though in some markets, firms are able to exploit forced bundling in insurance contracts to charge prices that exceed the value created by the products. D. Besanko, D. Dranove, and C. Garthwaite, "Insurance and the High Prices of Pharmaceuticals," NBER Working Paper 22353, June 2016.   Go to ⤴︎
8. A. Chandra and C. Garthwaite, "The Economics of Indication-Based Drug Pricing," New England Journal of Medicine, 377(2), 2017, pp. 103–6. Go to ⤴︎
9. D. Dranove, C. Garthwaite, and M. Hermosilla, "Pharmaceutical Profits and the Social Value of Innovation," NBER Working Paper 20212, June 2014.   Go to ⤴︎
10. A. Stern, B. Alexander, and A. Chandra, "Innovation Incentives and Biomarkers," Clinical Pharmacology and Therapeutics, 103(1), 2018, pp. 34–6.

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