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dc.contributor.authorBudish, Eric
dc.contributor.authorRoin, Ben
dc.contributor.authorWilliams, Heidi L.
dc.date.accessioned2015-07-28T17:32:07Z
dc.date.available2015-07-28T17:32:07Z
dc.date.issued2015-07
dc.identifier.issn0002-8282
dc.identifier.issn1944-7981
dc.identifier.urihttp://hdl.handle.net/1721.1/97906
dc.description.abstractWe investigate whether private research investments are distorted away from long-term projects. Our theoretical model highlights two potential sources of this distortion: short-termism and the fixed patent term. Our empirical context is cancer research, where clinical trials -- and hence, project durations -- are shorter for late-stage cancer treatments relative to early-stage treatments or cancer prevention. Using newly constructed data, we document several sources of evidence that together show private research investments are distorted away from long-term projects. The value of life-years at stake appears large. We analyze three potential policy responses: surrogate (non-mortality) clinical-trial endpoints, targeted R&D subsidies, and patent design.en_US
dc.language.isoen_US
dc.publisherAmerican Economic Associationen_US
dc.relation.isversionofhttp://dx.doi.org/10.1257/aer.20131176en_US
dc.rightsArticle is made available in accordance with the publisher's policy and may be subject to US copyright law. Please refer to the publisher's site for terms of use.en_US
dc.sourceAmerican Economic Associationen_US
dc.titleDo Firms Underinvest in Long-Term Research? Evidence from Cancer Clinical Trialsen_US
dc.typeArticleen_US
dc.identifier.citationBudish, Eric, Benjamin N. Roin, and Heidi Williams. “ Do Firms Underinvest in Long-Term Research? Evidence from Cancer Clinical Trials.” American Economic Review 105, no. 7 (July 2015): 2044–2085. © American Economic Associationen_US
dc.contributor.departmentMassachusetts Institute of Technology. Department of Economicsen_US
dc.contributor.departmentSloan School of Managementen_US
dc.contributor.mitauthorRoin, Benen_US
dc.contributor.mitauthorWilliams, Heidi L.en_US
dc.relation.journalAmerican Economic Reviewen_US
dc.eprint.versionFinal published versionen_US
dc.type.urihttp://purl.org/eprint/type/JournalArticleen_US
eprint.statushttp://purl.org/eprint/status/PeerRevieweden_US
dspace.orderedauthorsBudish, Eric; Roin, Benjamin N.; Williams, Heidien_US
dc.identifier.orcidhttps://orcid.org/0000-0001-8246-4877
dc.identifier.orcidhttps://orcid.org/0000-0003-4364-1505
mit.licensePUBLISHER_POLICYen_US
mit.metadata.statusComplete


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