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Income-Based Price Subsidies, Parallel Imports and Markets Access to New Drugs for the Poor

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Author Info
Rajat Acharyya
Maria D.C. Garcia-Alonso ()

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Abstract

In health markets, government policies tend to subsidise poorer groups. The purpose of this paper is to analyse the implications of an income-based subsidy policy on the incentives of countries to implement price arbitrage and of firms to provide market access to poorer groups.

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File URL: ftp://ftp.ukc.ac.uk/pub/ejr/RePEc/ukc/ukcedp/0820.pdf
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Publisher Info
Paper provided by Department of Economics, University of Kent in its series Studies in Economics with number 0820.

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Date of creation: Dec 2008
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Handle: RePEc:ukc:ukcedp:0820

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Postal: Department of Economics, University of Kent at Canterbury, Canterbury, Kent, CT2 7NP
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Web page: http://www.ukc.ac.uk/economics/

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Related research
Keywords: Pharmaceuticals; Income Based Subsidies; Parallel Imports; Market Access;

Find related papers by JEL classification:
D4 - Microeconomics - - Market Structure and Pricing
L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
I1 - Health, Education, and Welfare - - Health

This paper has been announced in the following NEP Reports:

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  1. Richardson, Martin, 2002. "An elementary proposition concerning parallel imports," Journal of International Economics, Elsevier, vol. 56(1), pages 233-245, January. [Downloadable!] (restricted)
  2. Izabela Jelovac & Catalina Bordoy, 2005. "Pricing and Welfare Implications of Parallel Imports in the Pharmaceutical Industry," International Journal of Health Care Finance and Economics, Springer, vol. 5(1), pages 5-21, January. [Downloadable!] (restricted)
  3. Stefan Felder, 2006. "Third-Degree Price Discrimination in the Presence of Subsidies," German Economic Review, Blackwell Publishing, vol. 7, pages 419-426, November. [Downloadable!] (restricted)
  4. Garci­a-Alonso, Mari­a D.C. & Garci­a-Mariñoso, Begoña, 2008. "The strategic interaction between firms and formulary committees: Effects on the prices of new drugs," Journal of Health Economics, Elsevier, vol. 27(2), pages 377-404, March. [Downloadable!] (restricted)
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