Data and Code for: Reference Pricing as a Deterrent to Entry: Evidence from the European Pharmaceutical Market

Principal Investigator(s):  View help for Principal Investigator(s) Luca Maini, University of North Carolina at Chapel Hill; Fabio Pammolli, Politecnico di Milano

Version:  View help for Version V1

Name File Type Size Last Modified
  Code Repository for upload 06/07/2022 09:18:AM

Project Citation: 

Maini, Luca, and Pammolli, Fabio. Data and Code for: Reference Pricing as a Deterrent to Entry: Evidence from the European Pharmaceutical Market. Nashville, TN: American Economic Association [publisher], 2023. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2023-04-14. https://doi.org/10.3886/E160781V1

Project Description

Summary:  View help for Summary External reference pricing (ERP), the practice of benchmarking domestic drug prices to foreign prices, generates an incentive for firms to withhold products from low-income countries. Using a novel moment inequality approach, we estimate a structural model to measure how ERP policies affect access to innovative drugs across Europe. We find that ERP increases entry delays in eight low-income European countries by up to one year per drug. The European Union could remove these delays without replacing ERP by compensating firms through lump-sum transfers at the cost of around 18 million euros per drug.

Scope of Project

Subject Terms:  View help for Subject Terms prescription drugs; moment inequality; reference pricing
JEL Classification:  View help for JEL Classification
      I11 Analysis of Health Care Markets
      L65 Chemicals; Rubber; Drugs; Biotechnology; Plastics
Geographic Coverage:  View help for Geographic Coverage Europe
Time Period(s):  View help for Time Period(s) 2002 – 2012
Universe:  View help for Universe Prescription drugs sold in Europe from 2002 to 2012
Data Type(s):  View help for Data Type(s) aggregate data

Methodology

Data Source:  View help for Data Source IMS MIDAS
Unit(s) of Observation:  View help for Unit(s) of Observation Drug, Country, Year

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Published Versions

V1 [2023-04-14]

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