Economic Analysis of Risk and Uncertainty Induced by Health Shocks: A Review and Extension
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that the FDA is responsible, the continued growth of development costs even after the
decline of approval times in the 1990s raises some questions. Has drug development hit
diminishing returns and is that the main driver of cost growth in recent decades? Are
approval times an adequate measure of FDA regulation or does the FDA offset lower
approval times with a higher standard for minimum quality or more rigorous screening
of IND applications?
8.4.5Consumer and Producer Surplus
The final parameters required to evaluate FDA policies are consumer and pr ...
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