Corporate Capital and (De)Monopolization of Public Health in the USA: An Institutionalist Perspective

Abstract

From the original institutional economics perspective, this article discusses the patent-driven R&D models and public support to the pharmaceutical industry that is linked to a rising monopoly power of corporate capital over public health in the USA. Using the U.S. historical health data, we analyze the effects of institutional changes, shaped by large corporate capital, on public health outcomes in terms of accessibility and affordability of the medical advances arising from R&D. The analysis reveals that private returns from publicly funded R&D is higher than its social returns, despite a growing public interest in providing more comprehensive medical coverage.

Keywords:

• public health
• pharmaceutical industry
• USA
• corporate capital
• Original Institutional Economics

JEL Classification Codes:

• B52
• H51
• O30

Additional information

Notes on contributors

Kosta Josifidis

Kosta Josifidis is at the University of Novi Sad, Serbia. Novica Supic is at the University of Novi Sad, Serbia, on the Faculty of Economics.

Novica Supic

Kosta Josifidis is at the University of Novi Sad, Serbia. Novica Supic is at the University of Novi Sad, Serbia, on the Faculty of Economics.