Financing Pharmaceutical Innovation: How Much Should Poor Countries Contribute?
AbstractWe use a public economics framework to consider how pharmaceuticals should be priced when at least some of the R&D incentive comes from sales revenues. We employ familiar techniques of public finance to relax some of the restrictions implied in the standard use of Ramsey pricing. In the more general model, poor countries should not necessarily cover even their own marginal costs, and the pricing structure is not related to that which would be chosen by a monopolist in a simple way. We use this framework to examine on-going debates regarding the international patent system as embodied in the WTO’s TRIPS agreement.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Center for Global Development in its series Working Papers with number 28.
Length: 27 pages
Date of creation: Jul 2003
Date of revision:
Contact details of provider:
Web page: http://www.cgdev.org
pharmaceutical; poor countries; pricing structure; patent system;
Other versions of this item:
- William Jack & Jean O. Lanjouw, 2005. "Financing Pharmaceutical Innovation: How Much Should Poor Countries Contribute?," World Bank Economic Review, World Bank Group, vol. 19(1), pages 45-67.
- O32 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Management of Technological Innovation and R&D
- D42 - Microeconomics - - Market Structure and Pricing - - - Monopoly
- D40 - Microeconomics - - Market Structure and Pricing - - - General
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- I12 - Health, Education, and Welfare - - Health - - - Health Production
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-09-03 (All new papers)
- NEP-HEA-2006-09-03 (Health Economics)
- NEP-INO-2006-09-03 (Innovation)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Patricia M. Danzon & Eric L. Keuffel, 2013. "Regulation of the Pharmaceutical-Biotechnology Industry," NBER Chapters, in: Economic Regulation and Its Reform: What Have We Learned? National Bureau of Economic Research, Inc.
- Julia Fimpel & Michael Stolpe, 2006. "The Welfare Costs of HIV/AIDS in Eastern Europe: An Empirical Assessment Using the Economic Value-of-Life Approach," Kiel Working Papers 1297, Kiel Institute for the World Economy.
- Michael Stolpe, 2001.
"Weltweiter Patentschutz für pharmazeutische Innovationen: Gibt es sozialverträgliche Alternativen?,"
Kiel Working Papers
1079, Kiel Institute for the World Economy.
- Michael Stolpe, 2003. "Weltweiter Patentschutz für pharmazeutische Innovationen: Gibt es sozialverträgliche Alternativen?," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 4(4), pages 437-448, November.
- Pedro Pita Barros & Xavier Martinez-Giralt, 2006. "On insurance and the cost-sharing of pharmaceutical R&D," Working Papers 293, Barcelona Graduate School of Economics.
- Pedro Barros & Xavier Martinez-Giralt, 2008. "On international cost-sharing of pharmaceutical R&D," International Journal of Health Care Finance and Economics, Springer, vol. 8(4), pages 301-312, December.
- Patricia M. Danzon & Andrew W. Mulcahy & Adrian K. Towse, 2011. "Pharmaceutical Pricing in Emerging Markets: Effects of Income, Competition and Procurement," NBER Working Papers 17174, National Bureau of Economic Research, Inc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (David Roodman).
If references are entirely missing, you can add them using this form.