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Distributional effects of `general population' prescription drug programs in Canada

Author

Listed:
  • Sule Alan
  • Thomas Crossley
  • Paul Grootendorst
  • Michael Veall

Abstract

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.

Suggested Citation

  • Sule Alan & Thomas Crossley & Paul Grootendorst & Michael Veall, 2005. "Distributional effects of `general population' prescription drug programs in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 38(1), pages 128-148, February.
    • Handle: RePEc:cje:issued:v:38:y:2005:i:1:p:128-148
    DOI: 10.1111/j.0008-4085.2005.00272.x
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    Cited by:

    1. Mark Stabile & Sarah Thomson, 2014. "The Changing Role of Government in Financing Health Care: An International Perspective," Journal of Economic Literature, American Economic Association, vol. 52(2), pages 480-518, June.
    2. Wang, Chao & Li, Qing & Sweetman, Arthur & Hurley, Jeremiah, 2015. "Mandatory universal drug plan, access to health care and health: Evidence from Canada," Journal of Health Economics, Elsevier, vol. 44(C), pages 80-96.
    3. Paul Grootendorst, 2012. "Prescription Drug Insurance and Reimbursement," Chapters, in: Andrew M. Jones (ed.), The Elgar Companion to Health Economics, Second Edition, chapter 11, Edward Elgar Publishing.
    4. Sam Caldbick & Xiaojing Wu & Tom Lynch & Naser Al-Khatib & Mustafa Andkhoie & Marwa Farag, 2015. "The financial burden of out of pocket prescription drug expenses in Canada," International Journal of Health Economics and Management, Springer, vol. 15(3), pages 329-338, September.
    5. repec:spo:wpmain:info:hdl:2441/3ihldo33ik9ee94procjtfki5f is not listed on IDEAS
    6. Hai Zhong, 2007. "Equity in Pharmaceutical Utilization in Ontario: A Cross-Section and Over Time Analysis," Canadian Public Policy, University of Toronto Press, vol. 33(4), pages 487-508, December.
    7. SØren Leth‐Petersen & Niels Skipper, 2014. "Income And The Use Of Prescription Drugs For Near Retirement Individuals," Health Economics, John Wiley & Sons, Ltd., vol. 23(3), pages 314-331, March.
    8. Goldman, Matt & Kaplan, David M., 2017. "Fractional order statistic approximation for nonparametric conditional quantile inference," Journal of Econometrics, Elsevier, vol. 196(2), pages 331-346.

    More about this item

    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets

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