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Pharmaceutical Policies in OECD Countries: Reconciling Social and Industrial Goals

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  • Stéphane Jacobzone

Abstract

Regulation of the pharmaceutical sector needs to reconcile private and social objectives. Public intervention pursues multiple goals which relate to both health and industry policy. Many OECD Governments are also heavily involved as buyers of pharmaceuticals in publicly-financed health care systems. This paper describes recent trends in pharmaceutical expenditure and financing in a first chapter. A second chapter discusses the economics of pharmaceutical markets. A third chapter provides a review of national policies and their attempts to balance public and private objectives.Pharmaceutical expenditure has been rising steadily as a share of GDP since 1970. However, total health expenditure has also risen. As a result, pharmaceutical expenditure has, on average, maintained its share of total health expenditure in the OECD, close to 15 %. Across countries, pharmaceutical expenditure per capita depends on relative incomes but is also influenced by institutional features. The pharmaceutical ... La régulation du secteur pharmaceutique doit réconcilier des objectifs sociaux et privés. L'intervention publique poursuit des objectifs multiples, relatifs tant à la politique de santé qu'à la politique industrielle. De nombreux gouvernements de l'OCDE sont également profondément engagés en tant qu'acheteurs de médicaments dans des systèmes de santé financés sur fonds publics. Dans un premier chapitre, cette etude décrit des tendances récentes des dépenses pharmaceutiques et du financement. Un second chapitre discute l'économie des marchés du médicament. Un troisième chapitre offre une revue des politiques nationales et de leurs efforts pour équilibrer les objectifs publics et privés.Les dépenses pharmaceutiques ont vu leur part du PIB s'accroître constamment depuis 1970. Cependant, la part des dépenses de santé s'est aussi accrue. Il en résulte que les dépenses de médicament ont dans l'ensemble maintenu leur part au sein des dépenses de santé, proche de 15 %. Les dépenses de ...

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  • Stéphane Jacobzone, 2000. "Pharmaceutical Policies in OECD Countries: Reconciling Social and Industrial Goals," OECD Labour Market and Social Policy Occasional Papers 40, OECD Publishing.
  • Handle: RePEc:oec:elsaaa:40-en
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    File URL: http://dx.doi.org/10.1787/323807375536
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    1. Morgan, Steve & McMahon, Meghan & Greyson, Devon, 2008. "Balancing health and industrial policy objectives in the pharmaceutical sector: Lessons from Australia," Health Policy, Elsevier, vol. 87(2), pages 133-145, August.
    2. Iain M. Cockburn & Jean O. Lanjouw & Mark Schankerman, 2016. "Patents and the Global Diffusion of New Drugs," American Economic Review, American Economic Association, vol. 106(1), pages 136-164, January.
    3. Laura Magazzini & Fabio Pammolli & Massimo Riccaboni, 2004. "Dynamic competition in pharmaceuticals," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 5(2), pages 175-182, May.
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    5. Antonio Cabrales, 2003. "Pharmaceutical generics, vertical product differentiation and public policy," Economics Working Papers 662, Department of Economics and Business, Universitat Pompeu Fabra.
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    9. Desmet, Klaus & Kujal, Praveen & Lobo, Felix, 2004. "Implementing R&D policies: an analysis of Spain's pharmaceutical research program," Research Policy, Elsevier, vol. 33(10), pages 1493-1507, December.
    10. Emmanuelle Auriol & Pierre M. Picard, 2009. "Government Outsourcing: Public Contracting with Private Monopoly," Economic Journal, Royal Economic Society, vol. 119(540), pages 1464-1493, October.
    11. repec:eee:ijrema:v:28:y:2011:i:4:p:295-308 is not listed on IDEAS
    12. Gianluca Baio & Laura Magazzini & Antonio Nicita & Fabio Pammolli & Massimo Riccaboni, 2003. "Il Decreto DL 15/04/2002, n. 63 sul Contenimento della Spesa Farmaceutica - Impatto sull'Industria e Distorsioni nel Funzionamento del Mercato," Working Papers CERM 0-2003, Competitività, Regole, Mercati (CERM).
    13. John Yfantopoulos, 2008. "Pharmaceutical pricing and reimbursement reforms in Greece," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 9(1), pages 87-97, February.
    14. Kwon, Hye-Young & Hong, Ji-Min & Godman, Brian & Yang, Bong-Min, 2013. "Price cuts and drug spending in South Korea: The case of antihyperlipidemic agents," Health Policy, Elsevier, vol. 112(3), pages 217-226.
    15. Konigbauer, Ingrid, 2007. "Advertising and generic market entry," Journal of Health Economics, Elsevier, vol. 26(2), pages 286-305, March.
    16. Papachristos, George & Adamides, Emmanuel, 2016. "A retroductive systems-based methodology for socio-technical transitions research," Technological Forecasting and Social Change, Elsevier, vol. 108(C), pages 1-14.
    17. Lexchin, Joel, 2004. "The effect of generic competition on the price of brand-name drugs," Health Policy, Elsevier, vol. 68(1), pages 47-54, April.
    18. Gambardella, Alfonso & Orsenigo, Luigi & Pammolli, Fabio, 2000. "Global Competitiveness in Pharmaceuticals: A European Perspective," MPRA Paper 15965, University Library of Munich, Germany.
    19. Christel Lane & Jocelyn Probert, 2003. "Globalisation and Its Impact on Competitiveness: the Case of the British and German Pharmaceutical Industry," Working Papers wp262, Centre for Business Research, University of Cambridge.
    20. Vincenzo Atella & Peter R. Noyce & Ellen Schafheutle & Karen Hassell, 2005. "Affordability of Medicines and Patients' Cost Reduction Behaviors: Empirical Evidence Based on SUR Estimates from Italy and the United Kingdom," CEIS Research Paper 71, Tor Vergata University, CEIS.
    21. Greffion, Jérôme & Breda, Thomas, 2015. "Façonner la prescription, influencer les médecins," Revue de la Régulation - Capitalisme, institutions, pouvoirs, Association Recherche et Régulation, vol. 17.
    22. Stremersch, S. & Lemmens, A., 2008. "Sales Growth of New Pharmaceuticals Across the Globe: The Role of Regulatory Regimes," ERIM Report Series Research in Management ERS-2008-026-MKT, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    23. Sarma, Sisira & Basu, Kisalaya & Gupta, Anil, 2007. "The influence of prescription drug insurance on psychotropic and non-psychotropic drug utilization in Canada," Social Science & Medicine, Elsevier, vol. 65(12), pages 2553-2565, December.
    24. Emma Verastegui & Alejandro Mohar, 2010. "Colorectal cancer in Mexico: should a middle income country invest in screening or in treatment?," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 10(1), pages 107-114, January.
    25. Vincenzo Atella & Franco Peracchi & Domenico Depalo & Claudio Rossetti, 2006. "Drug compliance, co-payment and health outcomes: evidence from a panel of Italian patients," Health Economics, John Wiley & Sons, Ltd., vol. 15(9), pages 875-892.

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