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Who benefits from pharmaceutical price controls? Evidence from India

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  • Dean, Emma B.

Abstract

This study examines the impacts of pharmaceutical price controls in a middle-income country setting, focusing on an implementation of pharmaceutical price ceilings in India. In the short-term, it finds that price controls led to declining prices for directly-impacted and competing products and increased market share for high-quality products. However, after price controls were implemented, low-priced firms were more likely to exit price-controlled markets and sales of price-controlled products declined in markets with stronger price controls. The benefits of the legislation were largest for quality-sensitive consumers, while the downsides most affected price-sensitive consumers.

Suggested Citation

  • Dean, Emma B., 2025. "Who benefits from pharmaceutical price controls? Evidence from India," Journal of Public Economics, Elsevier, vol. 250(C).
    • Handle: RePEc:eee:pubeco:v:250:y:2025:i:c:s0047272725001768
    DOI: 10.1016/j.jpubeco.2025.105478
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    References listed on IDEAS

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