IDEAS home Printed from https://ideas.repec.org/a/eee/hepoli/v87y2008i2p258-263.html
   My bibliography  Save this article

Entry of new pharmacies in the deregulated Norwegian pharmaceuticals market--Consequences for costs and availability

Author

Listed:
  • Rudholm, Niklas

Abstract

Objectives The objective of this study is to analyze the impact of the new regulation concerning entry of pharmacies into the Norwegian pharmaceuticals market in 2001 on cost and availability of pharmaceutical products.Methods In order to study costs, a translog cost function is estimated using data from the annual reports of a sample of Norwegian pharmacies before and after the deregulation of the market. Linear regression models for the number of pharmacies in each region in Norway are also estimated.Results The results show that the costs of the individual pharmacies have not decreased as a consequence of the deregulation of the Norwegian pharmaceuticals market. The deregulation of the market did, however, increase the availability to pharmacy services substantially.Conclusions Increased availability of pharmacy services can be achieved by deregulating pharmaceutical markets as in Norway, but at the expense of increased costs for the pharmacies.

Suggested Citation

  • Rudholm, Niklas, 2008. "Entry of new pharmacies in the deregulated Norwegian pharmaceuticals market--Consequences for costs and availability," Health Policy, Elsevier, vol. 87(2), pages 258-263, August.
    • Handle: RePEc:eee:hepoli:v:87:y:2008:i:2:p:258-263
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0168-8510(07)00254-0
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Lila Truett & Dale Truett, 2001. "The Spanish automotive industry: scale economies and input relationships," Applied Economics, Taylor & Francis Journals, vol. 33(12), pages 1503-1513.
    2. Holmberg, Christoffer & Kjellberg, Hans & Axelsson, Björn, 2003. "Läkemedelsdistributionen i Norden. En komparativ studie av aktörer, resurser och aktiviteter," SSE/EFI Working Paper Series in Business Administration 2003:10, Stockholm School of Economics, revised 07 Aug 2003.
    3. Chambers,Robert G., 1988. "Applied Production Analysis," Cambridge Books, Cambridge University Press, number 9780521314275.
    4. Niklas Rudholm, 2003. "Competition and substitutability in the Swedish pharmaceuticals market," Applied Economics, Taylor & Francis Journals, vol. 35(14), pages 1609-1617.
    5. Christensen, Laurits R & Greene, William H, 1976. "Economies of Scale in U.S. Electric Power Generation," Journal of Political Economy, University of Chicago Press, vol. 84(4), pages 655-676, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Grabein, Kristin & Greß, Stefan & Klaucke, Lena & Wasem, Jürgen, 2008. "Die Aufhebung des Fremd- und Mehrbesitzverbotes im deutschen Apothekenwesen vor dem Hintergrund internationaler Erfahrungen im Vereinigten Königreich und in Norwegen," IBES Diskussionsbeiträge 167, University of Duisburg-Essen, Institute of Business and Economic Studie (IBES).
    2. Moura, Ana, 2021. "Essays in health economics," Other publications TiSEM c93abd22-fa4a-42a5-b172-d, Tilburg University, School of Economics and Management.
    3. Guhl, Dennis & Stargardt, Tom & Schneider, Udo & Fischer, Katharina E., 2016. "Dispensing behaviour of pharmacies in prescription drug markets," Health Policy, Elsevier, vol. 120(2), pages 190-197.
    4. Vogler, Sabine & Habimana, Katharina & Arts, Danielle, 2014. "Does deregulation in community pharmacy impact accessibility of medicines, quality of pharmacy services and costs? Evidence from nine European countries," Health Policy, Elsevier, vol. 117(3), pages 311-327.
    5. Bruno, Giuseppe & Cavola, Manuel & Diglio, Antonio & Elizalde, Javier & Piccolo, Carmela, 2022. "A locational analysis of deregulation policies in the Spanish retail pharmaceutical sector," Socio-Economic Planning Sciences, Elsevier, vol. 82(PA).
    6. Ana Moura & Pedro Pita Barros, 2020. "Entry and price competition in the over‐the‐counter drug market after deregulation: Evidence from Portugal," Health Economics, John Wiley & Sons, Ltd., vol. 29(8), pages 865-877, August.
    7. Gallone, Emma Luisa & Ravetto Enri, Lorenzo & Pignata, Irene & Baratta, Francesca & Brusa, Paola, 2020. "The 2017 deregulation of pharmacies in Italy: Introducing non-pharmacist ownership," Health Policy, Elsevier, vol. 124(12), pages 1281-1286.
    8. Barbarisi, Ilaria & Bruno, Giuseppe & Diglio, Antonio & Elizalde, Javier & Piccolo, Carmela, 2019. "A spatial analysis to evaluate the impact of deregulation policies in the pharmacy sector: Evidence from the case of Navarre," Health Policy, Elsevier, vol. 123(11), pages 1108-1115.
    9. Andrea Cintolesi & Andrea Riganti, 2022. "Liberalizing the opening of new pharmacies and hospitalizations," Temi di discussione (Economic working papers) 1388, Bank of Italy, Economic Research and International Relations Area.
    10. Håkonsen, Helle & Sundell, Karolina Andersson & Martinsson, Johan & Hedenrud, Tove, 2016. "Consumer preferences for over-the-counter drug retailers in the reregulated Swedish pharmacy market," Health Policy, Elsevier, vol. 120(3), pages 327-333.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rudholm, Niklas, 2006. "Mergers and Economies of Scale: Volkswagen AG 1976 - 2000," HUI Working Papers 4, HUI Research.
    2. H. Youn Kim, 2003. "Intertemporal production and asset pricing: a duality approach," Oxford Economic Papers, Oxford University Press, vol. 55(2), pages 344-379, April.
    3. Ryu, Sang-Lyul & Won, Jayoun, 2022. "Scale and scope economies in Korean accounting firms around Sarbanes-Oxley regulations," Journal of Asian Economics, Elsevier, vol. 78(C).
    4. Subal Kumbhakar & Efthymios Tsionas, "undated". "Does Deregulation Change Economic Behavior of Firms?," Working Papers 0303, University of Crete, Department of Economics.
    5. Niklas Rudholm, 2003. "Competition and substitutability in the Swedish pharmaceuticals market," Applied Economics, Taylor & Francis Journals, vol. 35(14), pages 1609-1617.
    6. Gabriele Dono & Luca Giraldo & Simone Severini, 2012. "The Cost of Irrigation Water Delivery: An Attempt to Reconcile the Concepts of Cost and Efficiency," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 26(7), pages 1865-1877, May.
    7. Rinki Sarkar, 1998. "Economic Characteristics Of The Urban Bus Transit Industry- A Comparative Analysis Of Three Regulated Metropolitan Bus Corporations In India," Working papers 54, Centre for Development Economics, Delhi School of Economics.
    8. Dono, Gabriele & Giraldo, Luca, 2011. "Cost Analysis for Water Distribution in Agriculture," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114435, European Association of Agricultural Economists.
    9. Jongeneel, Roelof A. & Ge, Lan, 2005. "Explaining Growth in Dutch Agriculture: Prices, Public R&D, and Technological Change," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24573, European Association of Agricultural Economists.
    10. Paul, Saumik, 2019. "A Decline in Labor's Share with Capital Accumulation and Complementary Factor Inputs: An Application of the Morishima Elasticity of Substitution," IZA Discussion Papers 12219, Institute of Labor Economics (IZA).
    11. Massimo Filippini & Cornelia Luchsinger, 2007. "Economies of scale in the Swiss hydropower sector," Applied Economics Letters, Taylor & Francis Journals, vol. 14(15), pages 1109-1113.
    12. Peterson, Jeffrey M. & Boisvert, Richard N. & de Gorter, Harry, 1999. "Multifunctionality and Optimal Environmental Policies for Agriculture in an Open Economy," Working Papers 127701, Cornell University, Department of Applied Economics and Management.
    13. Cai, Yiyong & Newth, David & Finnigan, John & Gunasekera, Don, 2015. "A hybrid energy-economy model for global integrated assessment of climate change, carbon mitigation and energy transformation," Applied Energy, Elsevier, vol. 148(C), pages 381-395.
    14. V. Vandenberghe, 2018. "The Contribution of Educated Workers to Firms’ Efficiency Gains: The Key Role of Proximity to the ‘Local’ Frontier," De Economist, Springer, vol. 166(3), pages 259-283, September.
    15. Tchale, H. & Sauer, J., 2007. "Soil Fertility Management and Agricultural Productvity in Malawi," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 42, March.
    16. Oleg Badunenko & Michael Fritsch & Andreas Stephan, 2006. "What Determines the Technical Efficiency of a Firm? The Importance of Industry, Location, and Size," Jenaer Schriften zur Wirtschaftswissenschaft (Expired!) 33/2006, Friedrich-Schiller-Universität Jena, Wirtschaftswissenschaftliche Fakultät.
    17. David Van Dijcke, 2022. "On the Non-Identification of Revenue Production Functions," Papers 2212.04620, arXiv.org, revised Oct 2023.
    18. Margarita Genius & Spiro Stefanou & Vangelis Tzouvelekas, 2009. "Productivity Growth and Efficiency under Leontief Technology: An Application to US Steam-Electric Power Generation Utilities," Working Papers 0913, University of Crete, Department of Economics.
    19. Shumway, C. Richard & Davis, George C., 2001. "Does consistent aggregation really matter?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 45(2), pages 1-34.
    20. Mehdi Farsi & Aurelio Fetz & Massimo Filippini, 2007. "Benchmarking and Regulation in the Electricity Distribution Sector," CEPE Working paper series 07-54, CEPE Center for Energy Policy and Economics, ETH Zurich.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:hepoli:v:87:y:2008:i:2:p:258-263. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu or the person in charge (email available below). General contact details of provider: http://www.elsevier.com/locate/healthpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.