Strategic interaction among governments in the provision of a global public good

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Kyle, MK
Ridley, DB
Zhang, S

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© 2017 How do governments respond to other governments when providing a global public good? Using data from 2007 to 2014 on medical research funding for infectious and parasitic diseases, we examine how governments and foundations in 41 countries respond to funding changes by the US government (which accounts for half of funding for these diseases). Because funding across governments might be positively correlated due to unobserved drivers they have in common, we use variation in the representation of research-intensive universities on US Congressional appropriations committees as an instrument for US funding. We find that a 10 % increase in US government funding for a disease is associated with a 2 to 3 % reduction in funding for that disease by another government in the following year.






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Kyle, MK, DB Ridley and S Zhang (2017). Strategic interaction among governments in the provision of a global public good. Journal of Public Economics, 156. pp. 185–199. 10.1016/j.jpubeco.2017.10.009 Retrieved from

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David Blaine Ridley

Professor of the Practice of Business Administration

David Ridley is a health economist and Dr. and Mrs. Frank A. Riddick, Jr. Research Fellow at Duke University's Fuqua School of Business. His research focuses on incentives for innovation and quality, as well as pricing. He is dedicated to creating and studying tools that improve health.

David was the lead author of two papers that became law. He and his colleagues proposed the Food and Drug Administration (FDA) priority review voucher program which became law in 2007. The vouchers provide incentives for drug development for neglected and rare diseases. The FDA has awarded more than 70 vouchers valued at about $100 million each. David and his colleagues also proposed the Environmental Protection Agency vector expedited review voucher program which became law in 2022.

David has served for more than a decade as the Faculty Director for the Center for Health Sector Management (HSM). HSM students comprise nearly 20 percent of Duke MBA graduates each year.

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