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This paper uses pooled cross-section data on Canadian ethical drug sales to examine the effect of entry timing on sales of generic drugs. The data is for all drugs for which the first generic competitor entered during the years 1994-1997. It is found that the first generic entrant has a lasting competitive advantage: being first into the market appears to(More)
Because pharmaceutical markets are dysfunctional, the patent system does not effectively stimulate drug research and development. Instead, it induces large amounts of research into drugs with little incremental therapeutic value, while providing inadequate incentives to innovate in really novel areas. At the same time, patents result in high prices which(More)
Hundreds of independent, local, quasi-charitable microcredit societies, or $loan funds,# were lending to as many as 20% of Irish households in the mid-nineteenth century. Monitored by a central regulatory authority, funds in the system were successful in mitigating informational, moral hazard and enforcement problems, and thus operated at a surplus in a(More)
This paper offers an economic rationale for compulsory licensing of needed medicines in developing countries. The patent system is based on a trade-off between the "deadweight losses" caused by market power and the incentive to innovate created by increased profits from monopoly pricing during the period of the patent. However, markets for essential(More)
n engl j med 369;26 nejm.org december 26, 2013 2474 Medicare has options for alleviating the shifting of resources away from hospitals serving more disadvantaged patients. First, the payment criteria in HVBP could be altered to give more weight to quality improvement than to quality achievement. Second, instead of having all acute care hospitals compete(More)
Vitamin E and selenium play key roles in preventing in vitro lipid peroxidation and free radical damage to retinal tissues. In this research, we studied the effects of hyperbaric oxygen on retinal structure in rats fed diets deficient in vitamin E and/or selenium. We also correlated any alterations in retinal structure with previously measured alterations(More)
Introduction This brief note presents an economic perspective on “me-too” drugs (sometimes also called “follow-on” drugs). Me-too drugs are products which largely duplicate the action of existing drugs. Several recent books (such as Angell (2004), Avorn (2004) and Goozner (2004)) have heaped criticism on the drug industry for the increasing extent to which(More)