Health Care Management Papers
Document Type
Journal Article
Date of this Version
11-2010
Publication Source
Amrican Economic Journal: Economic Policy
Volume
2
Issue
4
Start Page
1
Last Page
25
DOI
10.1257/pol.2.4.1
Abstract
This paper analyzes the relationship between postmarketing promotional activity and reporting of adverse drug reactions (ADRs) by modeling the interaction between a regulator (the FDA) and a pharmaceutical firm. Promotion-driven market expansions enhance profitability yet may involve the risk of inappropriate drug prescriptions, leading to regulatory actions against the firm. We empirically test the relationship between drug promotion and reporting of ADRs using an innovative combination of commercial data on pharmaceutical promotion and FDA data on regulatory interventions and ADRs. We provide some evidence that increased levels of promotion and advertising lead to increased reporting of ADRs for certain conditions.
Recommended Citation
David, G., Markowitz, S., & Richards-shubik, S. (2010). The Effects of Pharmaceutical Marketing and Promotion on Adverse Drug Events and Regulation. Amrican Economic Journal: Economic Policy, 2 (4), 1-25. http://dx.doi.org/10.1257/pol.2.4.1
Included in
Health and Medical Administration Commons, Pharmacy Administration, Policy and Regulation Commons
Date Posted: 27 November 2017
This document has been peer reviewed.