Recent Work
-
The Elasticity of Pharmaceutical Innovation: How Much Does Revenue Drive New Drug Development?
The long-run innovation elasticity associated with U.S. revenues lies between 0.25 and 1.5, implying that a 10% reduction in expected revenues leads to a 2.5% to 15% decline in pharmaceutical innovation. Policymakers evaluating options to manage healthcare costs should take significant care to balance reductions in health outcomes long-term with short-term access improvements.
Categorized in