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Pharmaceutical Policies in OECD Countries: Reconciling Social and Industrial Goals

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  • Stéphane Jacobzone
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    Abstract

    Regulation of the pharmaceutical sector needs to reconcile private and social objectives. Public intervention pursues multiple goals which relate to both health and industry policy. Many OECD Governments are also heavily involved as buyers of pharmaceuticals in publicly-financed health care systems. This paper describes recent trends in pharmaceutical expenditure and financing in a first chapter. A second chapter discusses the economics of pharmaceutical markets. A third chapter provides a review of national policies and their attempts to balance public and private objectives. Pharmaceutical expenditure has been rising steadily as a share of GDP since 1970. However, total health expenditure has also risen. As a result, pharmaceutical expenditure has, on average, maintained its share of total health expenditure in the OECD, close to 15 %. Across countries, pharmaceutical expenditure per capita depends on relative incomes but is also influenced by institutional features. The pharmaceutical ... La régulation du secteur pharmaceutique doit réconcilier des objectifs sociaux et privés. L'intervention publique poursuit des objectifs multiples, relatifs tant à la politique de santé qu'à la politique industrielle. De nombreux gouvernements de l'OCDE sont également profondément engagés en tant qu'acheteurs de médicaments dans des systèmes de santé financés sur fonds publics. Dans un premier chapitre, cette etude décrit des tendances récentes des dépenses pharmaceutiques et du financement. Un second chapitre discute l'économie des marchés du médicament. Un troisième chapitre offre une revue des politiques nationales et de leurs efforts pour équilibrer les objectifs publics et privés. Les dépenses pharmaceutiques ont vu leur part du PIB s'accroître constamment depuis 1970. Cependant, la part des dépenses de santé s'est aussi accrue. Il en résulte que les dépenses de médicament ont dans l'ensemble maintenu leur part au sein des dépenses de santé, proche de 15 %. Les dépenses de ...

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    Bibliographic Info

    Paper provided by OECD Publishing in its series OECD Labour Market and Social Policy Occasional Papers with number 40.

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    Date of creation: 17 Apr 2000
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    Handle: RePEc:oec:elsaaa:40-en

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    Cited by:
    1. Gianluca Baio & Laura Magazzini & Antonio Nicita & Fabio Pammolli & Massimo Riccaboni, 2003. "Il Decreto DL 15/04/2002, n. 63 sul Contenimento della Spesa Farmaceutica," Working Papers 0-2003, Competitività Regole Mecati (CERM).
    2. Antonio Cabrales, 2003. "Pharmaceutical Generics, Vertical Product Differentiation, and Public Policy," Working Papers 54, Barcelona Graduate School of Economics.
    3. John Yfantopoulos, 2008. "Pharmaceutical pricing and reimbursement reforms in Greece," The European Journal of Health Economics, Springer, vol. 9(1), pages 87-97, February.
    4. Gambardella, Alfonso & Orsenigo, Luigi & Pammolli, Fabio, 2000. "Global Competitiveness in Pharmaceuticals: A European Perspective," MPRA Paper 15965, University Library of Munich, Germany.
    5. Laura Magazzini & Fabio Pammolli & Massimo Riccaboni, 2004. "Dynamic competition in pharmaceuticals," The European Journal of Health Economics, Springer, vol. 5(2), pages 175-182, May.
    6. Vincenzo Atella & Peter R. Noyce & Ellen Schafheutle & Karen Hassell, 2005. "Affordability of Medicines and Patients' Cost Reduction Behaviors: Empirical Evidence Based on SUR Estimates from Italy and the United Kingdom," CEIS Research Paper 71, Tor Vergata University, CEIS.
    7. Jean O. Lanjouw, 2005. "Patents, Price Controls, and Access to New Drugs: How Policy Affects Global Market Entry," NBER Working Papers 11321, National Bureau of Economic Research, Inc.
    8. Vincenzo Atella & Franco Peracchi & Domenico Depalo & Claudio Rossetti, 2006. "Drug compliance, co-payment and health outcomes: evidence from a panel of Italian patients," Health Economics, John Wiley & Sons, Ltd., vol. 15(9), pages 875-892.
    9. Konigbauer, Ingrid, 2007. "Advertising and generic market entry," Journal of Health Economics, Elsevier, vol. 26(2), pages 286-305, March.
    10. Emmanuelle Auriol & Pierre M. Picard, 2006. "Government Outsourcing: Public Contracting with Private Monopoly," CESifo Working Paper Series 1733, CESifo Group Munich.
    11. Stremersch, S. & Lemmens, A., 2008. "Sales Growth of New Pharmaceuticals Across the Globe: The Role of Regulatory Regimes," ERIM Report Series Research in Management ERS-2008-026-MKT, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    12. Christel Lane & Jocelyn Probert, 2003. "Globalisation and Its Impact on Competitiveness: the Case of the British and German Pharmaceutical Industry," ESRC Centre for Business Research - Working Papers wp262, ESRC Centre for Business Research.
    13. Laura Levaggi & Rosella Levaggi, 2009. "Welfare properties of restrictions to health care services based on cost effectiveness," Working Papers 0902, University of Brescia, Department of Economics.
    14. Frank Windmeijer & Eric de Laat & Rudy Douven & Esther Mot, 2006. "Pharmaceutical promotion and GP prescription behaviour," Health Economics, John Wiley & Sons, Ltd., vol. 15(1), pages 5-18.
    15. Klaus Desmet & Clara Eugenia García & Praveen Kujal & Félix Lobo, 2003. "Implementing R&D Policies: An Analysis Of Spain’S Pharmaceutical Research Program," Economics Working Papers we035923, Universidad Carlos III, Departamento de Economía.
    16. Emma Verastegui & Alejandro Mohar, 2010. "Colorectal cancer in Mexico: should a middle income country invest in screening or in treatment?," The European Journal of Health Economics, Springer, vol. 10(1), pages 107-114, January.
    17. Kwon, Hye-Young & Hong, Ji-Min & Godman, Brian & Yang, Bong-Min, 2013. "Price cuts and drug spending in South Korea: The case of antihyperlipidemic agents," Health Policy, Elsevier, vol. 112(3), pages 217-226.

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