Pharmaceutical Followers

Peter Arcidiacono, Paul Ellickson, Peter Landry and David Ridley

No 19522, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We estimate a model of drug demand and supply that incorporates insurance, advertising, and competition between branded and generic drugs within and across therapeutic classes. We use data on antiulcer drugs from 1991 to 2010. Our simulations show generics and ``me-too'' drugs each increased consumer welfare more than $100 million in 2010, holding insurance premiums constant. However, insurance payments in 2010 fell by nearly $1 billion due to generics and rose by over $7 billion due to me-too antiulcer drugs.

JEL-codes: I11 L13 L65 (search for similar items in EconPapers)
Date: 2013-10
New Economics Papers: this item is included in nep-com, nep-hea, nep-ipr, nep-pr~ and nep-mkt
Note: EH IO
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Citations: View citations in EconPapers (19)

Published as Arcidiacono, Peter & Ellickson, Paul B. & Landry, Peter & Ridley, David B., 2013. "Pharmaceutical followers," International Journal of Industrial Organization, Elsevier, vol. 31(5), pages 538-553.

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