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An economic perspective on policy to reduce antimicrobial resistance

Author

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  • Coast, J.
  • Smith, R. D.
  • Millar, M. R.

Abstract

Resistance to antimicrobial drugs is increasing worldwide. This resistance is, at least in part, associated with high antimicrobial usage. Despite increasing awareness, economists (and policy analysts more generally) have paid little attention to the problem. In this paper antimicrobial resistance is conceptualised as a negative externality associated with the consumption of antimicrobials and is set within the broader context of the costs and benefits associated with antimicrobial usage. It is difficult to determine the overall impact of attempting to reduce resistance, given the extremely limited ability to model the epidemiology of resistant and sensitive micro-organisms. It is assumed for the purposes of the paper, however, that dealing with resistance by reducting antimicrobial usage would lead to a positive societal benefit. Three policy options traditionally associated with environmental economics (regulation, permits and charges) are examined in relation to their potential ability to impact upon the problem of resistance. The primary care sector of the U.K.'s National Health Service provides the context for this examination. Simple application of these policies to health care is likely to be problematic, with difficulties resulting particularly from the potential reduction in clinical freedom to prescribe when appropriate, and from the desire for equity in health care provision. The paper tentatively concludes that permits could offer the best policy response to antimicrobial resistance, with the caveat that empirical research is needed to develop the most practical and efficient system. This research must be conducted alongside the required epidemiological research.

Suggested Citation

  • Coast, J. & Smith, R. D. & Millar, M. R., 1998. "An economic perspective on policy to reduce antimicrobial resistance," Social Science & Medicine, Elsevier, vol. 46(1), pages 29-38, January.
  • Handle: RePEc:eee:socmed:v:46:y:1998:i:1:p:29-38
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    1. Klaus Kaier & S. Moog, 2012. "Economic Consequences of the Demography of MRSA Patients and the Impact of Broad-Spectrum Antimicrobials," Applied Health Economics and Health Policy, Springer, vol. 10(4), pages 227-234, July.
    2. Dagim G. Belay & Tenaw G. Abate & Jørgen Dejgaard Jensen, 2020. "A Montero Auction Mechanism to Regulate Antimicrobial Consumption in Agriculture," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(5), pages 1448-1467, October.
    3. John B. Horowitz & H. Brian Moehring, 2014. "How Economic Development Affects Antibiotic Resistance," Journal for Economic Educators, Middle Tennessee State University, Business and Economic Research Center, vol. 14(1), pages 58-77, Fall.
    4. Belay, Dagim G. & Jensen, Jørgen D., 2020. "‘The scarlet letters’: Information disclosure and self-regulation: Evidence from antibiotic use in Denmark," Journal of Environmental Economics and Management, Elsevier, vol. 104(C).
    5. Sergi Jimenez-Martin & Catia Nicodemo & Stuart Redding, 2020. "Modelling the dynamic effects of elective hospital admissions on emergency levels in England," Empirical Economics, Springer, vol. 59(4), pages 1933-1957, October.
    6. John B. Horowitz & H. Brian Moehring, 2004. "How property rights and patents affect antibiotic resistance," Health Economics, John Wiley & Sons, Ltd., vol. 13(6), pages 575-583, June.
    7. Lhermie, Guillaume & Wernli, Didier & Jørgensen, Peter Søgaard & Kenkel, Donald & Lin Lawell, C.-Y. Cynthia & Tauer, Loren William & Gröhn, Yrjo Tapio, 2019. "Tradeoffs between resistance to antimicrobials in public health and their use in agriculture: Moving towards sustainability assessment," Ecological Economics, Elsevier, vol. 166(C), pages 1-1.
    8. Elamin H. Elbasha, 2003. "Deadweight loss of bacterial resistance due to overtreatment," Health Economics, John Wiley & Sons, Ltd., vol. 12(2), pages 125-138, February.
    9. M. Filippini & L. Ortiz & G. Masiero, 2013. "Assessing the impact of national antibiotic campaigns in Europe," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 14(4), pages 587-599, August.
    10. Smith, Richard D. & Yago, Milton & Millar, Michael & Coast, Jo, 2005. "Assessing the macroeconomic impact of a healthcare problem: The application of computable general equilibrium analysis to antimicrobial resistance," Journal of Health Economics, Elsevier, vol. 24(6), pages 1055-1075, November.
    11. Herrmann, Markus, 2010. "Monopoly pricing of an antibiotic subject to bacterial resistance," Journal of Health Economics, Elsevier, vol. 29(1), pages 137-150, January.
    12. Redding, Stuart & Nicodemo, Catia & Wittenberg, Raphael, 2021. "Analysis of trends in emergency and elective hospital admissions and hospital bed days 1997 to 2015," Social Science & Medicine, Elsevier, vol. 279(C).
    13. Bethany Cooper & Walter O. Okello, 2021. "An economic lens to understanding antimicrobial resistance: disruptive cases to livestock and wastewater management in Australia," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 65(4), pages 900-917, October.
    14. Barlow, Euan & Morton, Alec & Megiddo, Itamar & Colson, Abigail, 2022. "Optimal subscription models to pay for antibiotics," Social Science & Medicine, Elsevier, vol. 298(C).
    15. Farasat A.S. Bokhari & Franco Mariuzzo & Weijie Yan, 2019. "Antibacterial resistance and the cost of affecting demand: the case of UK antibiotics," Working Paper series, University of East Anglia, Centre for Competition Policy (CCP) 2019-03, Centre for Competition Policy, University of East Anglia, Norwich, UK..
    16. Filippini, Massimo & Masiero, Giuliano & Moschetti, Karine, 2006. "Socioeconomic determinants of regional differences in outpatient antibiotic consumption: Evidence from Switzerland," Health Policy, Elsevier, vol. 78(1), pages 77-92, August.
    17. Joanna Coast & Richard Smith & Anne‐Marie Karcher & Paula Wilton & Michael Millar, 2002. "Superbugs II: how should economic evaluation be conducted for interventions which aim to contain antimicrobial resistance?," Health Economics, John Wiley & Sons, Ltd., vol. 11(7), pages 637-647, October.
    18. Catherine A. Goodman & Paul G. Coleman & Anne J. Mills, 2001. "Changing the first line drug for malaria treatment—cost‐effectiveness analysis with highly uncertain inter‐temporal trade‐offs," Health Economics, John Wiley & Sons, Ltd., vol. 10(8), pages 731-749, December.

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