Innovation and the Welfare Effects of Public Drug Insurance

Prescription drug insurance is able to lower static deadweight loss without reducing incentives for innovation, with the result that the public provision of drug insurance can be welfare-improving, even for risk-neutral and purely self-interested consumers. The level of welfare improvement achieved is dependent on the design of insurers’ cost-sharing schedules and the size of such [...]

2017-07-03T22:49:59-06:00November 30th, 2008|Publications, Research|

Drug Licenses: A New Model for Pharmaceutical Pricing

A drug-licensing model for health care is proposed which has the promise of increasing drug use without altering patients' out-of-pocket spending, health plans' costs, or drug companies' profits. In such a model, people would purchase annual drug licences that would guarantee unfettered access to a clinically optimal number of prescriptions over the course of a [...]

2017-07-03T23:18:43-06:00January 31st, 2008|Publications, Research|