Is American Health Care Uniquely Inefficient? Evidence from Prescription Drugs

S-Tier
Journal: American Economic Review
Year: 2017
Volume: 107
Issue: 5
Pages: 486-90

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Alan Garber and Jonathan Skinner (2008) famously conjectured that the US health care system was "uniquely inefficient" relative to other countries. We test this idea using cross-country data on prescription drug sales newly linked with an arguably objective measure of relative therapeutic benefits, or drug quality. Specifically, we investigate how higher and lower quality drugs diffuse in the US relative to Australia, Canada, Switzerland, and the UK. Our tabulations suggest that lower quality drugs diffuse more in the US relative to high quality drugs compared to each of our four comparison countries--consistent with Garber and Skinner's conjecture.

Technical Details

RePEc Handle
repec:aea:aecrev:v:107:y:2017:i:5:p:486-90
Journal Field
General
Author Count
2
Added to Database
2026-01-25