In recent years, there are growing concerns on the issue of parallel trade on pharmaceuticals. It is an existing issue in the European Union and an emerging issue in North America and Asia. In this paper, a model is developed to explore the following issues in the presence of parallel trade: 1) the change of firm's profits; 2) drug price, supply and social welfare in the importing country; 3) drug price, supply and social welfare in the exporting country. The possible policy reactions of the government in the two countries are also discussed. By relaxing some assumptions, I extend the existing studies to a more general situation.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. 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.
Length: Date of creation: 2006 Date of revision: Handle: RePEc:uwo:epuwoc:20065
Contact details of provider: Postal: RBC Financial Group Economic Policy Research Institute, Social Science Centre, University of Western Ontario, London, Ontario, Canada N6A 5C2 Phone: 519-661-2111 Ext.85228 Web page: http://economics.uwo.ca/econref/WorkingPapers/
For technical questions regarding this item, or to correct its listing, contact: ().
Related research
Keywords:
This paper has been announced in the following NEP Reports: