Murphy-Economics Seminar: Tamar Oostrom (Ohio State)
"Representation, Innovation, and Product Adoption"
Assistant Professor of Economics at The Ohio State University
More Information
The Murphy Institute Spring Seminar Series in Economics
Each semester The Murphy Institute sponsors a series of seminars organized by the Tulane Department of Economics that provides an opportunity for faculty, researchers, and practitioners to present their latest research and pressing issues related to topics in political economy. Research presented covers all aspects of contemporary economics, including the economics of education, health economics, and public economics, as well as in economic history, international economics, and core areas in political economy. Papers are distributed one week beforehand to the participants who read the paper and prepare discussion questions for the presenter.
Tamar Oostrom is an Assistant Professor in the Department of Economics at The Ohio State University and a faculty research fellow at the National Bureau of Economic Research. Her areas of specialization are health economics and public economics. Her research focuses on the role of public policy and innovation in health care markets. Recent projects have focused on the effect of representation in clinical trials and the relationship between religiosity and deaths of despair.
Oostrom earned her PhD in economics from the Massachusetts Institute of Technology in 2020.
Abstract:
During research and development, firms must decide which user groups to engage when developing and testing their products. We investigate how subsidizing representation shapes innovation, product quality, and adoption. In 2000, Medicare expanded coverage of clinical trial costs, reducing financial constraints for elderly enrollees, a historically underrepresented group. Reducing financial constraints leads to an increase in representation: trial sponsors broaden eligibility criteria and enroll a higher share of elderly participants. We find an immediate and large increase in the number of clinical trials for diseases common among the elderly and increased drug utilization among elderly individuals. To explore potential mechanisms, we analyze clinical trial results, adverse events, and drug approvals. Our findings show how financial incentives can increase representation and lead to substantial changes in the rate and impact of subsequent innovation.
