Induced Innovation and Social Inequality: Evidence from Infant Medical Care

Posted: 15 Mar 2015

See all articles by Seth Richards-Shubik

Seth Richards-Shubik

Lehigh University - Department of Economics; National Bureau of Economic Research (NBER)

David M. Cutler

Harvard University - Department of Economics; National Bureau of Economic Research (NBER); Harvard University - Harvard Kennedy School (HKS)

Ellen Meara

Harvard Medical School; National Bureau of Economic Research (NBER)

Multiple version iconThere are 2 versions of this paper

Date Written: 2012

Abstract

We develop a model of induced innovation that applies to medical research. Our model yields three empirical predictions. First, initial death rates and subsequent research effort should be positively correlated. Second, research effort should be associated with more rapid mortality declines. Third, as a byproduct of targeting the most common conditions in the population as a whole, induced innovation leads to growth in mortality disparities between minority and majority groups. Using information on infant deaths in the United States between 1983 and 1998, we find support for all three empirical predictions.

Suggested Citation

Richards-Shubik, Seth and Cutler, David M. and Meara, Ellen, Induced Innovation and Social Inequality: Evidence from Infant Medical Care (2012). Journal of Human Resources, Vol. 47, No. 2, 2012, Available at SSRN: https://ssrn.com/abstract=2577962

Seth Richards-Shubik (Contact Author)

Lehigh University - Department of Economics ( email )

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David M. Cutler

Harvard University - Department of Economics ( email )

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Ellen Meara

Harvard Medical School ( email )

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