Economics of the Pharmaceutical Industry

Darius Lakdawalla

Journal of Economic Literature, 2018, vol. 56, issue 2, 397-449

Abstract: The pharmaceutical industry accounts for a substantial chunk of the US economy's research and development investments, which have resulted in significant medical breakthroughs. At the same time, the costs of pharmaceutical products continue to rise, as does pressure to adopt direct or indirect controls on pharmaceutical prices. We review the economics literature on the pharmaceutical industry, focusing particularly on its positive and normative implications for the innovation, pricing, and marketing decisions of pharmaceutical firms. We discuss the major achievements of, and persistent gaps in, the literature, along with lessons for policy.

JEL-codes: I11 L11 L65 M31 M37 O31 O34 (search for similar items in EconPapers)
Date: 2018
Note: DOI: 10.1257/jel.20161327
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Citations: View citations in EconPapers (41)

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