Please use this identifier to cite or link to this item: http://hdl.handle.net/1822/11663

TitleRegulation, generic competition and pharmaceutical prices : theory and evidence from a natural experiment
Author(s)Brekke, Kurt R.
Holmås, Tor Helge
Straume, Odd Rune
KeywordsPharmaceuticals
Regulation
Generic competition
Issue date2008
PublisherUniversidade do Minho. Núcleo de Investigação em Políticas Económicas (NIPE)
CitationBREKKE, Kurt R. ; HOLMAS, Tor Helge; STRAUME, Odd Rune – “Regulation, generic competition and pharmaceutical prices : theory and evidence from a natural experiment” [Em linha]. Braga : Núcleo de Investigação em Políticas Económicas, 2008. [Consult. 7 Fev. 2011]. Disponível em WWW:<URL:http://www3.eeg.uminho.pt/economia/nipe/docs/2008/NIPE_WP_1_2008.PDF>.
Abstract(s)We study the impact of regulatory regimes on generic competition and pharmaceutical pricing using a unique policy experiment in Norway, where reference pricing (RP) replaced price cap regulation in 2003 for a sub-sample of off-patent products. We exploit a detailed panel dataset at product level covering a wide set of off-patent drugs before and after the policy reform. Off-patent drugs not subject to reference pricing serve as our control group. We find that RP leads to lower relative prices, with the effect being driven by strong brand-name price reductions, and not increases in generic prices. We also find that RP increases generic competition, resulting in lower brand-name market shares. Finally, we show that RP has a strong negative effect on average prices at molecule level, suggesting significant cost-savings.
TypeWorking paper
URIhttp://hdl.handle.net/1822/11663
Peer-Reviewedno
AccessOpen access
Appears in Collections:NIPE - Documentos de Trabalho

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