Rewarding inventors with inefficient monopoly power has long been regarded as the price of
encouraging innovation. Prescription drug insurance escapes that trade-off and achieves an …

This paper studies the interactions between health insurance and the incentives for
innovation. Although we focus on pharmaceutical innovation, our discussion applies to other …

Monopolies appear throughout health care. We show that health insurance operates like a
conventional two-part pricing contract that allows monopolists to extract profits without …

Subsidized health insurance markets use diagnosis-based risk adjustment to induce
insurers to offer an equitable benefit to individuals of varying expected cost. I demonstrate …

This paper empirically examines the consumer welfare implications of changes in
government policies related to patent protection and compulsory licensing in the Indian …

Returns to innovation constitute a major component of social welfare. In this study, I
formulate an empirical methodology that quantifies patient welfare benefits from …

By influencing the size and bargaining power of private insurers, public subsidization of
private health insurance may project effects beyond the subsidized population. We test for …

We present a model in which prospective patients are liquidity constrained, and thus health
insurance allows patients access to treatments and services that they otherwise would have …

Pharmaceutical sales exceed $850 billion a year, of which 84% are accounted for by brand
drugs. Drug prices are the focus of an ongoing heated debate. While some argue that …

This paper examines the role of both cost-sharing schemes in health insurance systems and
the regulation of entry into the pharmaceutical sector for pharmaceutical R&D expenditure …