Taking Account
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چکیده
gies affect the quality of Much of the previous work The results indicate that the treatment and individual welfare examining innovation in the quality-adjusted price of antiis essential. Many economists health care sector relied on ag cholesterol drugs has fallen conwould agree that new technolo gregate data. However, Dunn’s siderably since 1996. The impact gies lead to higher expenditures paper relies on detailed, nationof innovation on welfare is meaon medical care as well as higher ally representative individual sured using a price index that quality treatment, which im level data that includes informa holds quality fixed. The price inproves patient welfare and low tion on health conditions, de dex that holds the quality of ers the total costs of treatment. mographics, health insurance, treatments constant fell 5 perBut measuring prices in a way drug insurance, and individualcent from 1996 to 2005. This that accounts for shifts in the specific drug choices. The main contrasts sharply with the averquality of treatments has long source of data was the Medical age price, which increased 37 presented challenges for econoExpenditure Panel Survey percent over this period. mists. In cases of rapid innova (MEPS) from 1996 to 2007. These results were con
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