IDEAS home Printed from https://ideas.repec.org/a/wly/canjec/v38y2005i1p128-148.html
   My bibliography  Save this article

Distributional effects of ‘general population’ prescription drug programs in Canada

Author

Listed:
  • Sule Alan
  • Thomas F. Crossley
  • Paul Grootendorst
  • Michael R. 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. JEL classification: I18, J42 Les effects de redistribution des programmes d'assurance‐médicaments pour la population en général au Canada. Les auteurs étudient les dépenses des ménages canadiens pour les médicaments sur ordonnance à l'aide des données de l'Enquête sur les dépenses des familles pour des périodes qui couvrent les moments où on a mis en place des programmes provinciaux d'assurance‐médicaments pour la population en général. Les portions des budgets des ménages qui ne sont pas des ménages d'ainés sont analysées à l'aide de méthodes de régression non‐paramétrique, de techniques paramétriques de “différence dans les différences”, et de régression quantile. Les résultats suggérent que bien que les effects de ces programmes soient assourdis quand les montants déductibles à la base sont élevés, une subvention pour les médicaments sous ordonnance pour les non‐aînés a un effet de redistribution plus important qu'un transfert de revenu proportionnel d'un coût égal, en partie à cause des différences dans la couverture des régimes privés d'assurance‐santé selon les niveaux de revenus. Cela contraste avec les résultats d'études antérieures sur l'impact des assurance‐médicaments pour les aînés au Canada.

Suggested Citation

  • Sule Alan & Thomas F. Crossley & Paul Grootendorst & Michael R. Veall, 2005. "Distributional effects of ‘general population’ prescription drug programs in Canada," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 38(1), pages 128-148, February.
  • Handle: RePEc:wly:canjec:v:38:y:2005:i:1:p:128-148
    DOI: 10.1111/j.0008-4085.2005.00272.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.0008-4085.2005.00272.x
    Download Restriction: no

    File URL: https://libkey.io/10.1111/j.0008-4085.2005.00272.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Robin Boadway, 1997. "Public Economics and the Theory of Public Policy," Canadian Journal of Economics, Canadian Economics Association, vol. 30(4), pages 753-772, November.
    2. Paul V. Grootendorst, 1997. "Health care policy evaluation using longitudinal insurance claims data: An application of the Panel Tobit estimator," Health Economics, John Wiley & Sons, Ltd., vol. 6(4), pages 365-382, July.
    3. Mark Stabile, 2001. "Private insurance subsidies and public health care markets: evidence from Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 34(4), pages 921-942, November.
    4. Richard Blundell & Alan Duncan, 1998. "Kernel Regression in Empirical Microeconomics," Journal of Human Resources, University of Wisconsin Press, vol. 33(1), pages 62-87.
    5. Jay Bhattacharya & Darius Lakdawalla, 2002. "Does Medicare Benefit the Poor? New Answers to an Old Question," NBER Working Papers 9280, National Bureau of Economic Research, Inc.
    6. Leibowitz, Arleen & Manning, Willard G. & Newhouse, Joseph P., 1985. "The demand for prescription drugs as a function of cost-sharing," Social Science & Medicine, Elsevier, vol. 21(10), pages 1063-1069, January.
    7. Adonis Yatchew, 1998. "Nonparametric Regression Techniques in Economics," Journal of Economic Literature, American Economic Association, vol. 36(2), pages 669-721, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:hal:spmain:info:hdl:2441/3ihldo33ik9ee94procjtfki5f is not listed on IDEAS
    2. 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.
    3. 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.
    4. 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.
    5. 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.
    6. 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.
    7. repec:spo:wpmain:info:hdl:2441/3ihldo33ik9ee94procjtfki5f is not listed on IDEAS
    8. 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.
    9. 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alan, Sule & Crossley, Thomas F. & Grootendorst, Paul & Veall, Michael R., 2002. "The effects of drug subsidies on out-of-pocket prescription drug expenditures by seniors: regional evidence from Canada," Journal of Health Economics, Elsevier, vol. 21(5), pages 805-826, September.
    2. Corak, Miles & Lauzon, Darren, 2009. "Differences in the distribution of high school achievement: The role of class-size and time-in-term," Economics of Education Review, Elsevier, vol. 28(2), pages 189-198, April.
    3. Ichimura, Hidehiko & Todd, Petra E., 2007. "Implementing Nonparametric and Semiparametric Estimators," Handbook of Econometrics, in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 6, chapter 74, Elsevier.
    4. Syed Abul Hasan, 2016. "Engel curves and equivalence scales for Bangladesh," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 21(2), pages 301-315, April.
    5. Justin L. Tobias, 2003. "Are Returns to Schooling Concentrated Among the Most Able? A Semiparametric Analysis of the Ability–earnings Relationships," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 65(1), pages 1-29, February.
    6. Henrik Christoffersen & Martin Paldam & Allan Würtz, 2007. "Public versus private production and economies of scale," Public Choice, Springer, vol. 130(3), pages 311-328, March.
    7. Justin Tobias, 2003. "The effects of cognitive ability and high school quality on college entry decisions: nonparametric estimation of parameters of interest," Applied Economics, Taylor & Francis Journals, vol. 35(2), pages 209-215.
    8. Sule Alan & Thomas F. Crossley & Paul Grootendorst & Michael R. Veall, 2002. "Out-of-Pocket Prescription Drug Expenditures and Public Prescription Drug Programs," Quantitative Studies in Economics and Population Research Reports 379, McMaster University.
    9. Dale J. Poirier & Gary Koop & Justin Tobias, 2005. "Semiparametric Bayesian inference in multiple equation models," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 20(6), pages 723-747.
    10. Glenn Jones & Elizabeth Savage & Kees Van Gool, 2008. "The Distribution of Household Health Expenditures in Australia," The Economic Record, The Economic Society of Australia, vol. 84(s1), pages 99-114, September.
    11. Shen, Leilei, 2013. "Financial dependence and growth: Diminishing returns to improvement in financial development," Economics Letters, Elsevier, vol. 120(2), pages 215-219.
    12. Corak, Miles & Lauzon, Darren, 2009. "Differences in the distribution of high school achievement: The role of class-size and time-in-term," Economics of Education Review, Elsevier, vol. 28(2), pages 189-198, April.
    13. Lauzon, Darren & Corak, Miles, 2005. "Differences entre les distributions du rendement scolaire au secondaire : le role de la taille de la classe et du temps d'enseignement," Direction des études analytiques : documents de recherche 2005270f, Statistics Canada, Direction des études analytiques.
    14. Jaume Puig‐Junoy & Pilar García‐Gómez & David Casado‐Marín, 2016. "Free Medicines Thanks to Retirement: Impact of Coinsurance Exemption on Pharmaceutical Expenditures and Hospitalization Offsets in a national health service," Health Economics, John Wiley & Sons, Ltd., vol. 25(6), pages 750-767, June.
    15. BERTINELLI, Luisito & STROBL, Eric, 2003. "Urbanization, urban concentration and economic growth in developing countries," LIDAM Discussion Papers CORE 2003076, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    16. Koop, Gary & Poirier, Dale J., 2004. "Bayesian variants of some classical semiparametric regression techniques," Journal of Econometrics, Elsevier, vol. 123(2), pages 259-282, December.
    17. Temel, Tugrul T., 2001. "A Nonparametric Hypothesis Test Via The Bootstrap Resampling," 2001 Annual meeting, August 5-8, Chicago, IL 20600, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    18. Alberto Abadie & Guido W. Imbens, 2002. "Simple and Bias-Corrected Matching Estimators for Average Treatment Effects," NBER Technical Working Papers 0283, National Bureau of Economic Research, Inc.
    19. Subal Kumbhakar & Efthymios Tsionas, 2008. "Scale and efficiency measurement using a semiparametric stochastic frontier model: evidence from the U.S. commercial banks," Empirical Economics, Springer, vol. 34(3), pages 585-602, June.
    20. Barrios, Salvador & Strobl, Eric, 2009. "The dynamics of regional inequalities," Regional Science and Urban Economics, Elsevier, vol. 39(5), pages 575-591, September.

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:canjec:v:38:y:2005:i:1:p:128-148. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://doi.org/10.1111/(ISSN)1540-5982 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.