Data and Code for "The Economics of the Public Option: Evidence from Local Pharmaceutical Markets"

Principal Investigator(s):  View help for Principal Investigator(s) Jose Ignacio Cuesta, Stanford University; Felipe Gonzalez, Queen Mary University; Juan Pablo Atal, University of Pennsylvania; Cristobal Otero, Columbia University

Version:  View help for Version V1

Name File Type Size Last Modified
  Replication 01/29/2024 12:25:PM

Project Citation: 

Cuesta, Jose Ignacio, Gonzalez, Felipe, Atal, Juan Pablo, and Otero, Cristobal. Data and Code for “The Economics of the Public Option: Evidence from Local Pharmaceutical Markets.” Nashville, TN: American Economic Association [publisher], 2024. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2024-02-14. https://doi.org/10.3886/E193764V1

Project Description

Summary:  View help for Summary
We study the effects of competition by state-owned firms, leveraging the decentralized entry of public pharmacies to local markets in Chile. Public pharmacies sell the same drugs at a third of private pharmacy prices, because of stronger upstream bargaining and market power in the private sector, but are of lower quality. Public pharmacies induced market segmentation and price increases in the private sector, which benefited the switchers to the public option but harmed the stayers. The countrywide entry of public pharmacies would reduce yearly consumer drug expenditure by 1.6 percent.
Funding Sources:  View help for Funding Sources Center for Effective Global Action

Scope of Project

JEL Classification:  View help for JEL Classification
      L30 Nonprofit Organizations and Public Enterprise: General


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Published Versions

V1 [2024-02-14]

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