PUBLICATIONS
Books
The Independent Review
(Quarterly Journal)
Policy Reports
The Lighthouse
(Email Newsletter)
Commentary Articles
News Releases
Audio and Visual Programs
The Independent
(Quarterly Newsletter)
Research Articles
Working Papers
Course Adoption Program




Subscribe



Commentary
Facebook Facebook Facebook Facebook

Contribute
Your participation will advance liberty. Join us as an Independent Institute member.



Contact Us
The Independent Institute
100 Swan Way
Oakland, CA 94621-1428

510-632-1366 Phone
510-568-6040 Fax
Send us email


Interested in working with us?  Click here for more information.

Working Paper #10

The Anomaly of Off-Label Drug Prescriptions


     
 Print 

Abstract: It is commonly thought that the FDA regulates the use of all drugs in the United States. In fact, most hospital patients are given drugs which are not FDA approved for the prescribed use. Once a drug has been approved for some use, the FDA has almost no control over how that drug is prescribed. Since old drugs with new uses are a substitute for new drugs, the practice of off-label prescribing is a regulatory anomaly. If there are good reasons for the FDA to have strong pre-approval powers shouldn't FDA post-approval powers be commensurate? Alternatively, if there are good reasons for widespread off-label prescribing doesn't this call into question the FDA's pre-approval powers? The unregulated off-label market gives us some idea of what the pharmaceutical market would look like absent the FDA's requirement to test drugs for efficacy. The net benefits of the unregulated off-label market appear to be large thus suggesting that the pre-approval market for pharmaceuticals is over regulated.

A paper based on this work has now been published as:
Tabarrok, Alexander. 2000. Assessing the FDA via the Anomaly of Off-Label Drug Prescribing. The Independent Review Vol 5 #1: 25-53.

Alexander Tabarrok is Senior Fellow at The Independent Institute, Assistant Editor of The Independent Review, and Associate Professor of Economics at George Mason University. He received his Ph.D. in economics from George Mason University, and he has taught at the University of Virginia and Ball State University. Dr. Tabarrok is the editor of The Independent Institute books, Entrepreneurial Economics (Oxford University Press), The Voluntary City (with David Beito and Peter Gordon, University of Michigan Press), and Changing the Guard: Private Prisons and the Control of Crime.

JudgeNew from Alexander Tabarrok!
JUDGE AND JURY: American Tort Law on Trial

In Judge and Jury, the fear of litigation is shown to reduce innovations, drive physicians and manufacturers out of lawsuit-prone specialties, and increase manufacturing and consumer costs. In the courts, data from thousands of cases all over the country demonstrate that tort system awards are driven by political factors such as judicial elections, jury compositions, and the location of courts themselves. Learn More »»






Home | About Us | Blogs | Issues | Newsroom | Multimedia | Events | Publications | Centers | Students | Store | Donate

Product Catalog | RSS | Jobs | Course Adoption | Links | Privacy Policy | Site Map
Facebook Facebook Facebook Facebook
Copyright 2014 The Independent Institute