Plausibly Exogenous [789] - Market Size and Innovation (03/18/2022)
LHS Variable
Entry of new innovation
RHS Variable
Market size
Source of Exogenous Variation
Variations in market size driven by U. S. demographic changes, which should be exogenous to other, for example scientific, determinants of innovation and entry of new drugs
- Acemoglu and Linn (2004), “Market Size in Innovation: Theory and Evidence from the Pharmaceutical Industry”