Has the European Union Achieved a Single Pharmaceutical Market?
This paper explores price differences in the European Union (EU) pharmaceutical market, the EU's fifth largest industry. With the aim of enhancing quality of life along with industry competitiveness and R&D capability, many EU directives have been adopted to achieve a single EU-wide pharmaceutical market. Using annual 1994-2003 data on prices of molecules that treat cardiovascular disease, we examine whether drug price dispersion has indeed decreased across five EU countries. Hedonic regressions show that over time, cross-country price differences between Germany and three of the four other EU sample countries, France, Italy and Spain, have declined, with relative prices in all three as well as the fourth country, UK, rising during the period. We interpret this as evidence that the EU has come closer to achieving a single pharmaceutical market in response to increasing European Commission coordination efforts.
|Date of creation:||Aug 2010|
|Date of revision:|
|Publication status:||published as Aysegul Timur & Gabriel Picone & Jeffrey DeSimone, 2011. "Has the European union achieved a single pharmaceutical market?," International Journal of Health Care Finance and Economics, Springer, vol. 11(4), pages 223-244, December.|
|Contact details of provider:|| Postal: |
Web page: http://www.nber.org
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- F. M. Scherer, 1993. "Pricing, Profits, and Technological Progress in the Pharmaceutical Industry," Journal of Economic Perspectives, American Economic Association, vol. 7(3), pages 97-115, Summer.
- Kurt R. Brekke & Ingrid Königbauer & Odd Rune Straume, 2006.
"Reference Pricing of Pharmaceuticals,"
CESifo Working Paper Series
1825, CESifo Group Munich.
- Judith K. Hellerstein, 1998. "The Importance of the Physician in the Generic Versus Trade-Name Prescription Decision," RAND Journal of Economics, The RAND Corporation, vol. 29(1), pages 108-136, Spring.
- Ellison, S & Cockburn, I & Griliches, A & Hausman, J, 1996.
"Characteristics of Demand for Pharmaceutical Products : an Examination of four Cephalosporins,"
96-24, Massachusetts Institute of Technology (MIT), Department of Economics.
- Sara Ellison Fisher & Iain Cockburn & Zvi Griliches & Jerry Hausman, 1997. "Characteristics of Demand for Pharmaceutical Products: An Examination of Four Cephalosporins," RAND Journal of Economics, The RAND Corporation, vol. 28(3), pages 426-446, Autumn.
- Ganslandt, Mattias & Maskus, Keith E., 2004.
"Parallel imports and the pricing of pharmaceutical products: evidence from the European Union,"
Journal of Health Economics,
Elsevier, vol. 23(5), pages 1035-1057, September.
- Ganslandt, Mattias & Maskus, Keith E., 2004. "Parallel Import and the Pricing of Pharmaceutical Products: Evidence from the European Union," Working Paper Series 622, Research Institute of Industrial Economics.
- Boris Augurzky & Silja Göhlmann & Stefan Gre� & Jürgen Wasem, 2009. "Effects of the German reference drug program on ex-factory prices of prescription drugs: a panel data approach," Health Economics, John Wiley & Sons, Ltd., vol. 18(4), pages 421-436.
- Kravis, Irving B & Lipsey, Robert E, 1969. "International Price Comparisons by Regression Methods," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 10(2), pages 233-46, June.
- Danzon, Patricia M. & Chao, Li-Wei, 2000. "Cross-national price differences for pharmaceuticals: how large, and why?," Journal of Health Economics, Elsevier, vol. 19(2), pages 159-195, March.
When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:16261. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.