The search for new vaccines

In this volume, Henry Grabowski and John Vernon examine the effect of the Vaccines for Children program on the incentives to invest in research and development for new and improved vaccines. The authors argue that significantly expanding the government sector in pediatric vaccines is a cost-ineffective policy that would lead to unintended adverse consequences. Eliminating most of the private market for vaccines and substituting government purchases at lower prices would suggest to R&D investors that tomorrow's pediatric vaccine breakthroughs are to be valued less than other medical breakthroughs. Ironically, a government program designed to advance children's health care could operate to curtail the opportunities for improving it.