Costs and Benefits of Medical Research: A Case Study of Poliomyelitis

The Journal of Political Economy, Vol. 79, No. 3, pp. 527-544, May-June 1971

19 Pages Posted: 29 May 2011

See all articles by Burton A. Weisbrod

Burton A. Weisbrod

Northwestern University - Department of Economics; University of California, San Diego (UCSD) - Department of Economics

Date Written: May 1, 1971

Abstract

The paper provides estimates of (1) research expenditures on poliomyelitis, (2) several forms of productivity benefits from applying the knowledge generated by the research, and (3) the costs of applying that knowledge. Internal rates of return are computed under a variety of assumptions, with results generally between 4 and 14 percent. The inter-relatedness of research with procedures for applying the research findings is investigated; in the case of polio, the rate of return on research is found to be heavily influenced by the costs of application. Finally, a discussion is included of the likely allocative efficiency of private-market behavior when a collective-consumption good, such as research knowledge, requires the use of an individual-consumption good, such as a vaccination, for its application.

Suggested Citation

Weisbrod, Burton A., Costs and Benefits of Medical Research: A Case Study of Poliomyelitis (May 1, 1971). The Journal of Political Economy, Vol. 79, No. 3, pp. 527-544, May-June 1971, Available at SSRN: https://ssrn.com/abstract=1853805

Burton A. Weisbrod (Contact Author)

Northwestern University - Department of Economics ( email )

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University of California, San Diego (UCSD) - Department of Economics ( email )

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