Price and welfare effects of a pharmaceutical substitution reform.

Abstract:

:The price effects of the Swedish pharmaceutical substitution reform are analyzed using data for a panel of all pharmaceutical product sold in Sweden in 1997-2007. The price reduction due to the reform was estimated to average 10% and was found to be significantly larger for brand-name pharmaceuticals than for generics. The results also imply that the reform amplified the effect that generic entry has on brand-name prices by a factor of 10. Results of a demand estimation imply that the price reductions increased total pharmaceutical consumption by 8% and consumer welfare by SEK 2.7 billion annually.

journal_name

J Health Econ

authors

Granlund D

doi

10.1016/j.jhealeco.2010.08.003

subject

Has Abstract

pub_date

2010-12-01 00:00:00

pages

856-65

issue

6

eissn

0167-6296

issn

1879-1646

pii

S0167-6296(10)00102-5

journal_volume

29

pub_type

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