Daniel Bauer, Darius Lakdawalla, Julian Reif, 05 November 2018

People with shorter life expectancies place more value on increases in survival than people who anticipate longer life spans. That may seem obvious, but economists have been making the opposite prediction for decades. This column demonstrates the mistake in the earlier theory and points out important policy implications, including that payers and governments are undervaluing investments in treating highly severe illnesses.

Rena Conti, Ernst Berndt, David Howard, 25 March 2015

Total US prescription drug spending rose 13% in 2014, the biggest increase in a decade. Driving this trend is spending on branded specialty drugs, which rose an unprecedented 31%. This column discusses recent research into the relationship between inflation-adjusted launch prices and survival benefits and approval year for 58 anticancer drugs approved in the US between 1995 and 2013. The authors find that launch prices are going up by $8,500 per year, approximately 12% year over year.

Eric Sun, Anupam Jena, Tomas Philipson , Darius Lakdawalla, Carolina Reyes, Dana Goldman, 11 January 2010

US healthcare costs are under scrutiny. Americans have spent billions of dollars on cancer research in recent decades. Has it paid off? This column says that investments in cancer research and development have been quite worthwhile – producing a value to society far in excess of costs.

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