How did the 2003 prescription drug re-importation bill pass the house?

We examine the major interest groups in the debate over allowing the re-importation of prescription drugs by utilizing a logit model and instrumental variables. Consistent with political support approach, the evidence suggests that Representatives are maximizing their electoral prospects: Contributions from pharmaceutical manufacturers shrink the probability of voting for the bill; and Representatives are sensitive to their constituencies - employees of pharmaceutical manufacturing and senior citizens. Representatives' gender and ideology regarding free trade and subsidies are also determining factors. However, the decision was, by and large, a partisan one: Party affiliation was the most important factor in passing the bill. © 2006 The Authors. Journal compilation © 2006 Blackwell Publishing Ltd.

Duke Scholars

Author Edward Tower Economics

Author Henry G. Grabowski Economics