Pricing and R&D When Consumption Affects Longevity

Details

Serval ID
serval:BIB_33F991309078
Type
Article: article from journal or magazin.
Collection
Publications
Institution
Title
Pricing and R&D When Consumption Affects Longevity
Journal
RAND Journal of Economics
Author(s)
Geoffard Pierre-Yves, Philipson Tomas
ISSN
0741-6261
Publication state
Published
Issued date
2002
Volume
33
Number
1
Pages
85-95
Language
english
Abstract
We analyze goods for which the amount of consumption determines the duration of consumption, focusing on health-related consumption that affects longevity. The characteristics of the demand for such goods lead to unique predictions about private pricing and investment in R&D as well as the fiscal effects of public subsidies and taxes. In particular, we argue that there is an R&D feedback for such goods when the market size expands through longevity-induced population growth. As developed countries devote large shares of public spending to old-age programs that may themselves affect longevity, e.g., Medicare and Social Security in the United States, these effects may become increasingly important. [Authors]
Keywords
Economics
Create date
14/03/2008 10:20
Last modification date
20/08/2019 13:20
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