This paper has two purposes. The first is to examine whether increased
medication of inhaled corticosteroids by asthmatic patients is correl
ated with an improvement in asthma control, measured as a reduction in
asthma hospitalizations. The other purpose, if such a relationship ca
n be established, is to analyse the economic consequences. Regional da
ta on asthma hospitalization, i.e. number of bed-days, and sales of an
ti-asthmatic drugs from 14 regions in Sweden between 1978 and 1989 wer
e used (covering 71% of the Swedish population). The data were analyse
d in multivariate pooled cross-section, time-series regressions. The v
ariation in bed-days was explained by three variables: the sales of in
haled corticosteroids; total supply of in-patient care; and sales of i
nhaled bronchodilators, which were used as a proxy for asthma prevalen
ce. The results indicate that sales of inhaled corticosteroids are sig
nificantly correlated with decreased hospitalizations for asthma. Assu
ming that the correlation also reflects a causal relationship, an incr
ease in sales of inhaled corticosteroids by 1 defined daily dose (DDD)
per day and 1000 inhabitants gave, on average over the study period,
a reduction of 1.7 bed-days for asthma in in-patient care per 1000 inh
abitants.