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What Can Economics Say about Alzheimer's Disease?
Amitabh Chandra1, Courtney Coile2, Corina Mommaerts3
1Harvard University and NBER.
Journal of Economic Literature
|February 7, 2025
Summary
Alzheimer's disease (AD) presents unique economic challenges, focusing on patient choices and contract enforcement. Research is vital for innovation in AD prevention, treatment, and care to manage its high social cost.
Area of Science:
- Health Economics
- Neuroscience Economics
Background:
- Alzheimer's disease (AD) impacts 1 in 10 individuals over 65, representing a significant economic burden in the US.
- The economic study of AD is distinct due to the emphasis on choices made by cognitively impaired patients affecting their health and finances.
Purpose of the Study:
- To outline the central economic questions and research opportunities presented by Alzheimer's disease.
- To highlight the need for economic analysis in AD prevention, treatment, care, and public policy.
Main Methods:
- The study frames economic questions related to AD, emphasizing patient decision-making and contractual challenges.
- It identifies areas for economic research, including innovation, resource allocation, and incentive alignment.
Main Results:
- The economics of AD uniquely involves impaired patient choices and difficulties in enforcing dynamic contracts between patients and caregivers.
- Understanding AD's causes is crucial for optimal resource allocation and aligning private/social incentives for innovation.
Conclusions:
- Economists can significantly contribute to understanding AD-related issues, from drug development to public program design.
- A rich research agenda exists for economics in areas like efficient care delivery, financial decision-making, and long-term care risk management for AD.
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