The Economic Benefits of Pharmaceutical Innovations: The Case of Cox-2 Inhibitors

Craig L. Garthwaite

American Economic Journal: Applied Economics, 2012, vol. 4, issue 3, 116-37

Abstract: Despite dramatic improvements in medical technology, little attention has been paid to the role of these innovations in improving economic outcomes. This study estimates the labor supply effects of Cox-2 inhibitors, a widely prescribed class of pharmaceuticals used for the treatment of chronic pain and inflammation and primarily marketed under the brand names Vioxx, Celebrex, and Bextra. This paper exploits the removal of Vioxx from the market in 2004 as an exogenous change in drug use. This removal was associated with a 0.35 percentage point decrease in overall labor force participation and $19 billion in lost wages. (JEL I12, J22, L65, O31).

JEL-codes: I12 J22 L65 O31 (search for similar items in EconPapers)
Date: 2012
Note: DOI: 10.1257/app.4.3.116
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Citations: View citations in EconPapers (36)

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