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dc.contributor.author Ellickson, Paul en_US
dc.contributor.author Stern, Scott en_US
dc.contributor.author Trajtenberg, Manuel en_US
dc.date.accessioned 2010-03-09T15:43:19Z
dc.date.available 2010-03-09T15:43:19Z
dc.date.issued 1999 en_US
dc.identifier.uri http://hdl.handle.net/10161/2066
dc.description.abstract The main goal of this paper is to develop an empirical framework for evaluating the patient welfare benefits arising from pharmaceutical innovation. Extending previous studies of the welfare benefits from innovation (Trajtenberg, 1990; Hausman, 1996), this paper unpacks the separate choices made by physicians and patients in pharmaceutical decisionmaking and develops an estimable econometric model which reflects these choices. Our proposed estimator for patient welfare depends on (a) whether patients comply with the prescriptions they receive from physicians and (b) the motives of physicians in their prescription behavior. By focusing on compliance behavior, the proposed welfare measure reflects a specific economic choice made by patients. We review evidence that the rate of noncompliance ranges up to 70%, suggesting an important gulf between physician prescription behavior and realized patient welfare. Since physicians act as imperfect but interested agents for their patients, the welfare analysis based on compliance must account for the nonrandom selection of patients into drugs by their physicians. The key contribution of this paper resides in integrating the choices made by both physicians and patients into a unified theoretical framework and suggesting how the parameters of such a model can be estimated from data. en_US
dc.format.extent 126632 bytes
dc.format.mimetype application/pdf
dc.language.iso en_US
dc.publisher SSRN eLibrary en_US
dc.subject patient welfare benefits en_US
dc.subject pharmaceutical innovation en_US
dc.subject welfare analysis en_US
dc.title Patient Welfare and Patient Compliance: An Empirical Framework for Measuring the Benefits from Pharmaceutical Innovation en_US
dc.type Journal Article en_US
dc.department Economics

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