Distributional effects of `general population' prescription drug programs in Canada
Canadian household prescription drug expenditures are studied using the Statistics Canada Family Expenditure Survey masterfiles for periods that include the introduction of provincial `general population' prescription drug programs. Budget shares for non-senior households are examined over time using non-parametric regression, parametric `difference-in-difference' techniques, and quantile regression methods. The evidence suggests that while program effects are muted when there are high deductibles, a non-senior prescription drug subsidy is more redistributive than an equal-cost proportional income transfer, in part because of differential private health insurance coverage by income. This is in contrast to previous evidence on Canadian senior prescription drug subsidies.
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Volume (Year): 38 (2005)
Issue (Month): 1 (February)
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