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

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  • Sule Alan
  • Thomas Crossley
  • Paul Grootendorst
  • Michael Veall

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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Bibliographic 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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Postal: Canadian Economics Association Prof. Steven Ambler, Secretary-Treasurer c/o Olivier Lebert, CEA/CJE/CPP Office C.P. 35006, 1221 Fleury Est Montréal, Québec, Canada H2C 3K4
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Cited by:
  1. Hai Zhong, 2007. "Equity in Pharmaceutical Utilization in Ontario: A Cross Section and Over Time Analysis," University of Western Ontario, Economic Policy Research Institute Working Papers 20071, University of Western Ontario, Economic Policy Research Institute.
  2. Mark Stabile & Sarah Thomson, 2014. "The Changing Role of Government in Financing Health Care: An International Perspective," Journal of Economic Literature, American Economic Association, vol. 52(2), pages 480-518, June.

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