We use national data from 1960 to 2000 to estimate the demand for pharmaceuticals in the United States. We then simulate consumer surplus gains from a hypothetical drug price control policy that would have limited drug price increases to the rate of inflation from 1981 to 2000. Using a range of...

The new drug cost offset theory argues that new drugs pay for themselves by keeping people out of expensive medical facilities. However, few studies have tested this theory at the macroeconomic level to determine if system-wide savings actually accrue. This article provides two tests of the new...

During the 2009–2010 health care reform debates, many policy makers presumed that a lack of competition in the U.S. health insurance industry had resulted in greater levels of uninsurance. However, such a presumption has no basis in current research. This study, with a panel data set of the 50...