Dataset Information

Pharmaceutical price controls and minimum efficacy regulation: evidence from the United States and Italy.

ABSTRACT:

Objective

This article examines the relationship between drug price and drug quality and how it varies across two of the most common regulatory regimes in the pharmaceutical market: minimum efficacy standards (MES) and a mix of MES and price control mechanisms (MES + PC).

Data sources

Our primary data source is the Tufts-New England Medical Center-Cost Effectiveness Analysis Registry which have been merged with price data taken from MEPS (for the United States) and AIFA (for Italy).

Study design

Through a simple model of adverse selection we model the interaction between firms, heterogeneous buyers, and the regulator.

Principal findings

The theoretical analysis provides two results. First, an MES regime provides greater incentives to produce high-quality drugs. Second, an MES + PC mix reduces the difference in price between the highest and lowest quality drugs on the market.

Conclusion

The empirical analysis based on United States and Italian data corroborates these results.

SUBMITTER: Atella V

PROVIDER: S-EPMC3447248 | biostudies-literature | 2012 Feb

REPOSITORIES: biostudies-literature

ACCESS DATA

Publications

Pharmaceutical price controls and minimum efficacy regulation: evidence from the United States and Italy.

Atella Vincenzo V Bhattacharya Jay J Carbonari Lorenzo L

Health services research 20111018 1 Pt 1

<h4>Objective</h4>This article examines the relationship between drug price and drug quality and how it varies across two of the most common regulatory regimes in the pharmaceutical market: minimum efficacy standards (MES) and a mix of MES and price control mechanisms (MES + PC).<h4>Data sources</h4>Our primary data source is the Tufts-New England Medical Center-Cost Effectiveness Analysis Registry which have been merged with price data taken from MEPS (for the United States) and AIFA (for Italy ...[more]

PMID: 22091623

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Dataset Information

Pharmaceutical price controls and minimum efficacy regulation: evidence from the United States and Italy.

Objective

Data sources

Study design

Principal findings

Conclusion

Publications

Pharmaceutical price controls and minimum efficacy regulation: evidence from the United States and Italy.

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