Jeffrey S. McCullough
Health Management and Policy
University of Michigan
1415 Washington Heights M3110 SPH II
Ann Arbor, MI 48109
Institutional Affiliation: University of Michigan
NBER Working Papers and Publications
|August 2017||Consumer Learning and the Entry of Generic Pharmaceuticals|
with , , : w23662
Generic pharmaceuticals provide low-cost access to treatment. Despite their chemical equivalence to branded products, many mechanisms may hinder generic substitution. Consumers may be unaware of their equivalence. Firms may influence consumers through advertising or product line extensions. We estimate a structural model of pharmaceutical demand where consumers learn about stochastic match qualities with specific drugs. Naïve models, without consumer heterogeneity and learning, grossly underestimate demand elasticities. Consumer bias against generics critically depends on experience. Advertising and line extensions yield modest increases in branded market shares. These effects are dominated by consumers’ initial perception bias against generics.
|January 2013||Health Information Technology and Patient Outcomes: The Role of Organizational and Informational Complementarities|
with , : w18684
Health information technology (IT) adoption, it is argued, will dramatically improve patient care. We study the impact of hospital IT adoption on patient outcomes focusing on the roles of technological and organizational complements in affecting IT's value and explore underlying mechanisms through which IT facilitates the coordination of labor inputs. We link detailed hospital discharge data on all Medicare fee-for-service admissions from 2002-2007 to detailed hospital-level IT adoption information. We employ a difference-in-differences strategy to identify the parameters of interest. For all IT sensitive conditions we find that health IT adoption reduces mortality for the most complex patients but does not affect outcomes for the median patient. This implies that the benefits from IT adop...
|April 2012||The Impact of Health Information Technology on Hospital Productivity|
with , : w18025
The US health care sector is, by most accounts, extraordinarily inefficient. Health information technology (IT) has been championed as a tool that can transform health care delivery. Recently, the federal government has taken an active role in promoting health IT diffusion. There is little systematic analysis of the causal impact of health IT on productivity or whether private and public returns to health IT diverge thereby justifying government intervention. We estimate the parameters of a value-added hospital production function correcting for endogenous input choices in order to assess the private returns hospitals earn from health IT. Despite high marginal products, the potential benefits from expanded IT adoption are modest. Over the span of our data, health IT inputs increased by mor...
Published: The impact of health information technology on hospital productivity Jinhyung Lee; Jeffrey S. Mccullough; Robert J. Town (Profiled Author: Jeffrey S McCullough) RAND Journal of Economics. 2013;44(3):545-568. citation courtesy of
|June 2002||Biotech-Pharmaceutical Alliances as a Signal of Asset and Firm Quality|
with , : w9007
Biotechnology companies rely heavily on alliances with pharmaceutical companies to finance their research and development expenditures, and pharmaceutical firms rely heavily on alliances to supplement their internal research and development. Previous studies suggest that asymmetric information may lead to inefficient contracting. We examine the determinants of biotech-pharmaceutical deal prices to determine whether the market for deals between biotech and pharmaceutical companies functions as a well-informed market or whether it is characterized by asymmetric information. We find that inexperienced biotech companies receive substantially discounted payments when signing their first deal. Drugs that are jointly developed are more likely to advance in clinical trials than drugs that are deve...
Published: Sean Nicholson, 2005. "Biotech-Pharmaceutical Alliances as a Signal of Asset and Firm Quality," Journal of Business, University of Chicago Press, vol. 78(4), pages 1433-1464, July. citation courtesy of