RT Journal Article
SR Electronic
T1 Induced Innovation and Social Inequality
JF Journal of Human Resources
JO J Hum Resour
FD University of Wisconsin Press
SP 456
OP 492
DO 10.3368/jhr.47.2.456
VO 47
IS 2
A1 David M. Cutler
A1 Ellen Meara
A1 Seth Richards-Shubik
YR 2012
UL http://jhr.uwpress.org/content/47/2/456.abstract
AB 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.