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Distribution of health-related social surplus in pharmaceuticals: an estimation of consumer and producer surplus in the management of high blood lipids and COPD

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Listed:
  • Rodrigo Camejo
  • Clare McGrath
  • Marisa Miraldo
  • Frans Rutten

Abstract

A considerable amount of the value may be recouped by consumers only towards the end of the lifecycle. Elements affecting the distribution of social surplus vary across disease areas and include the market pricing structure and the pattern of clinical effectiveness observed over time. The application of a longer-term disease specific perspective may be required when assessing the cost-effectiveness of health technologies at launch. Copyright Springer-Verlag Berlin Heidelberg 2014

Suggested Citation

  • Rodrigo Camejo & Clare McGrath & Marisa Miraldo & Frans Rutten, 2014. "Distribution of health-related social surplus in pharmaceuticals: an estimation of consumer and producer surplus in the management of high blood lipids and COPD," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 15(4), pages 439-445, May.
    • Handle: RePEc:spr:eujhec:v:15:y:2014:i:4:p:439-445
    DOI: 10.1007/s10198-013-0484-1
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    References listed on IDEAS

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    1. Philipson Tomas J & Jena Anupam B, 2006. "Who Benefits from New Medical Technologies? Estimates of Consumer and Producer Surpluses for HIV/AIDS Drugs," Forum for Health Economics & Policy, De Gruyter, vol. 9(2), pages 1-33, January.
    2. Lakdawalla, Darius N. & Sun, Eric C. & Jena, Anupam B. & Reyes, Carolina M. & Goldman, Dana P. & Philipson, Tomas J., 2010. "An economic evaluation of the war on cancer," Journal of Health Economics, Elsevier, vol. 29(3), pages 333-346, May.
    3. Jena, Anupam B. & Philipson, Tomas J., 2008. "Cost-effectiveness analysis and innovation," Journal of Health Economics, Elsevier, vol. 27(5), pages 1224-1236, September.
    4. Refoios Camejo, Rodrigo & McGrath, Clare & Herings, Ron, 2011. "A dynamic perspective on pharmaceutical competition, drug development and cost effectiveness," Health Policy, Elsevier, vol. 100(1), pages 18-24, April.
    5. Jena, Anupam B. & Philipson, Tomas J., 2013. "Endogenous cost-effectiveness analysis and health care technology adoption," Journal of Health Economics, Elsevier, vol. 32(1), pages 172-180.
    6. Thomas A. Abbott & John A. Vernon, 2005. "The Cost of US Pharmaceutical Price Reductions: A Financial Simulation Model of R&D Decisions," NBER Working Papers 11114, National Bureau of Economic Research, Inc.
    7. Craig L. Garthwaite, 2012. "The Economic Benefits of Pharmaceutical Innovations: The Case of Cox-2 Inhibitors," American Economic Journal: Applied Economics, American Economic Association, vol. 4(3), pages 116-137, July.
    8. Rodrigo Refoios Camejo & Clare McGrath & Marisa Miraldo & Frans Rutten, 2013. "The Determinants of Cost-Effectiveness Potential: An Historical Perspective on Lipid-Lowering Therapies," PharmacoEconomics, Springer, vol. 31(5), pages 445-454, May.
    9. Peter Lindgren & Bengt Jönsson, 2012. "Cost–effectiveness of statins revisited: lessons learned about the value of innovation," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 13(4), pages 445-450, August.
    10. David Reiffen & Michael R. Ward, 2005. "Generic Drug Industry Dynamics," The Review of Economics and Statistics, MIT Press, vol. 87(1), pages 37-49, February.
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    Cited by:

    1. Beth Woods & Aimée Fox & Mark Sculpher & Karl Claxton, 2021. "Estimating the shares of the value of branded pharmaceuticals accruing to manufacturers and to patients served by health systems," Health Economics, John Wiley & Sons, Ltd., vol. 30(11), pages 2649-2666, November.
    2. Patrícia Véras Marrone & Fabio Rampazzo Mathias & Wanderley Marques Bernardo & Marina Feliciano Orlandini & Maria Carolina Andrade Serafim & Maria Lídia Rebello Pinho Dias Scoton & Juliano Marçal Lope, 2023. "Decision Criteria for Partial Nationalization of Pharmaceutical Supply Chain: A Scoping Review," Economies, MDPI, vol. 11(1), pages 1-21, January.

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    More about this item

    Keywords

    Consumer surplus; Producer surplus; Dynamic efficiency; Research and development; Pharmaceutical innovation; Pharmaceutical policy; H51; I11; I18;
    All these keywords.

    JEL classification:

    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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