In this paper, we use individual level data on purchases of one of the most prescribed categories of drugs (cholesterol-lowering statins) to study the responses of physicians and patients to variation in the cost of drugs. In a sample of first-time statin prescriptions to employees from a group...

Nearly all the empirical literature on tort liability in the healthcare sector focuses on physicians. This paper is among the first to focus on products liability litigation against drug companies. We model and estimate the welfare effects of failure-to-warn suits, the most common type of tort...

A controversial feature of Medicare Part D is its reliance on private insurers to negotiate drug prices and rebates with retail pharmacies and drug manufacturers. Central to this controversy is whether increases in market power--an undesirable feature in most settings--confer benefits in health...