This volume contradicts the commonly-held belief that, among rich countries, the marginal return from pharmaceutical consumption is negligible. Authors Frech and Miller find there is a measurable health return to higher consumption of pharmaceuticals--especially in middle age and beyond. They quantify the productive effect of pharmaceutical consumption in extending life.

The Productivity of Health Care and Pharmaceuticals provides a more comprehensive and reliable basis for measuring the health effect of pharmaceutical consumption than earlier international comparisons. The study is an important breakthrough in the debate about the allocation of health care resources.

H. E. Frech III is a professor of economics at the University of California-Santa Barbara and a an adjunct scholar at AEI.

Richard D. Miller Jr. is a research analyst with the Center for Naval Analyses in Alexandria, Virginia.