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September 22, 2004

FDA Attempting to Reduce Already Low Risk of Mad-Cow Components in Drugs

The Wall Street Journal reports, "The U.S. government is taking steps to reduce the already minimal risk of mad-cow tainted components ending up in childhood vaccines and other medications. Pharmaceuticals regulated by the agency, including human vaccines and animal drugs used on farms, routinely use cow products in their manufacture. The agency this summer strengthened safety measures to reduce the chance of mad cow-tainted cow parts winding up in such consumer goods as lipstick and hairspray. William Egan, FDA acting director in the office of vaccine research and review, told pharmaceutical representatives on Tuesday that the new rule is aimed at reducing even further mad cow risk in human and animal drugs. He did not offer specifics."

In A Rational Risk Policy for Regulating Plant Diseases and Pests, Glauber and Narrod discuss the importance of economic analysis in responding to disease outbreaks. The authors contend that, although indeed diseases and pests pose risks to U.S. agriculture and forests, regulations and quarantines to control these risks are costly. The U.S. Department of Agriculture issues rules to control these risks based on economic analyses that do not take adequate account of links between risks and policy outcomes. A benefit-cost analysis that fully incorporates both the risk of a disease outbreak and the effect of regulations and quarantines on such risk can yield quite different conclusions.

Matthew D. Adler discusses the valuation of the perception of risk in his paper: Fear Assessment: Cost-Benefit Analysis and the Pricing of Fear and Anxiety. Adler claims that benefits to regulations such as reducing fear and anxiety are valuable contributions to society and should be weighed into regulatory decisions by incorporating them into cost benefit analyses. In arguing for "fear assessment" as a component of cost-benefit analysis, Adler contributes to the literature on cost-benefit analysis and also stakes out a novel position in scholarly debates about risk regulation.

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