Distributional effects of `general population' prescription drug programs in Canada

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Distributional effects of `general population' prescription drug programs in Canada

Author Info

Sule Alan
Thomas Crossley
Paul Grootendorst
Michael Veall

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Abstract

Canadian household prescription drug expenditures are studied using the Statistics Canada Family Expenditure Survey masterfiles for periods that include the introduction of provincial `general population' prescription drug programs. Budget shares for non-senior households are examined over time using non-parametric regression, parametric `difference-in-difference' techniques, and quantile regression methods. The evidence suggests that while program effects are muted when there are high deductibles, a non-senior prescription drug subsidy is more redistributive than an equal-cost proportional income transfer, in part because of differential private health insurance coverage by income. This is in contrast to previous evidence on Canadian senior prescription drug subsidies.

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Publisher Info
Article provided by Canadian Economics Association in its journal Canadian Journal of Economics.

Volume (Year): 38 (2005)
Issue (Month): 1 (February)
Pages: 128-148
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Handle: RePEc:cje:issued:v:38:y:2005:i:1:p:128-148

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Related research
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Find related papers by JEL classification:
I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets

Cited by:
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Hai Zhong, 2007. "Equity in Pharmaceutical Utilization in Ontario: A Cross Section and Over Time Analysis," University of Western Ontario, RBC Financial Group Economic Policy Research Institute Working Papers 20071, University of Western Ontario, RBC Financial Group Economic Policy Research Institute. [Downloadable!]

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