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External economies of scale, government purchasing commitment and welfare improvements in the vaccines industry

Author

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  • Pedro Garcia-del-Barrio

    (Universitat Internacional de Catalunya)

Abstract

Some industries exhibit external economies of scale. In these cases,the introduction of self-financing tax subsidy programmes canimprove social welfare. This paper advocates intervention incompetitive markets if economies of scale existand implementing the policy is inexpensive.

Suggested Citation

  • Pedro Garcia-del-Barrio, 2012. "External economies of scale, government purchasing commitment and welfare improvements in the vaccines industry," European Journal of Government and Economics, Europa Grande, vol. 1(2), pages 163-179, December.
    • Handle: RePEc:egr:ejge00:v:1:i:2:p:163-179
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    References listed on IDEAS

    as
    1. Jacques Thépot, 2003. "Pareto‐Improving Redistribution in a Monopoly," The Japanese Economic Review, Japanese Economic Association, vol. 54(2), pages 165-178, June.
    2. Masahiko Aoki, 2013. "Marshallian External Economies And Optimal Tax-Subsidy Structure," Chapters, in: Comparative Institutional Analysis, chapter 2, pages 5-17, Edward Elgar Publishing.
    3. Osana, Hiroaki, 1977. "Optimal Tax-Subsidy System for an Economy with Marshallian Externalities," Econometrica, Econometric Society, vol. 45(2), pages 329-340, March.
    4. Stephen Broadberry & Andrew Marrison, 2002. "External economies of scale in the Lancashire cotton industry, 1900–1950[Without im]," Economic History Review, Economic History Society, vol. 55(1), pages 51-77, February.
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    6. John S. Chipman, 1970. "External Economies of Scale and Competitive Equilibrium," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 84(3), pages 347-385.
    7. Ethier, Wilfred J, 1982. "Decreasing Costs in International Trade and Frank Graham's Argument for Protection," Econometrica, Econometric Society, vol. 50(5), pages 1243-1268, September.
    8. Frank D. Graham, 1923. "Some Aspects of Protection Further Considered," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 37(2), pages 199-227.
    9. Panagariya, Arvind, 1981. "Variable Returns to Scale in Production and Patterns of Specialization," American Economic Review, American Economic Association, vol. 71(1), pages 221-230, March.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Pedro Garcia-del-Barrio, 2017. "Pareto-improving income redistribution: expanding consumer access to the vaccines market," Economics of Governance, Springer, vol. 18(3), pages 275-313, August.

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    More about this item

    Keywords

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    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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