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Unformatted text preview: ECON 3301 – 001: HEALTH ECONOMICS, Spring 2011 Assignment 7, due 2/17 – The impact of new drugs on U.S. longevity & medical expenditure, 1990 – 2003 Please submit a scantron form, with one letter filled in corresponding to the answer for each question and no more than two names, at the beginning of the next class. 1. Health care is expected to embody significant technical progress because a. Capital equipment, which embodies technical progress, is an important input b. Pharmaceutical production is highly R&D intensive c. Life expectancies have increased substantially since 1990 d. Medical expenditures have risen much faster than inflation since 1990 2. Pharmaceutical-embodied technical progress would imply that β in equation (1) is a. Negative and significant b. Insignificantly different from zero c. Positive and significant d. None of the above, since pharmaceutical-embodied technical progress is unrelated to β 3. The effect of prescription drug vintage in equation (2), compared to equation (1), is expected to be...
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This note was uploaded on 04/04/2011 for the course ECON 3301 taught by Professor Staff during the Spring '08 term at UT Arlington.
- Spring '08