Universal Access, Parallel Trade and Incentives to Innovate
In: Bulletin of Economic Research Vol. 66, Issue S1, pp. S74-S91, 2014
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In: Bulletin of Economic Research Vol. 66, Issue S1, pp. S74-S91, 2014
SSRN
In: Bulletin of economic research, Band 66, Heft S1
ISSN: 1467-8586
ABSTRACTGovernments often subsidize poorer groups in society to ensure their access to new drugs. We analyse the optimal income‐based price subsidies in a strategic environment. We show that universal access is less likely to arise when price arbitrage prevents international price discrimination. When this is not the case, under some income ranges, bilateral universal coverage can be supported by equilibrium subsidies together with bilateral partial provision. In such a case, international health policy coordination becomes relevant. We also show that asymmetric universal access to medicines across countries can arise, even when countries are ex ante symmetric, when international price discrimination is possible and governments cannot design subsidies proportional to either income or quality.
Governments often subsidize poorer groups in society to ensure their access to new drugs. We analyze here the optimal income-based price subsidies in a strategic environment. We show that asymmetric health systems can arise even though countries are ex-ante symmetric when international price discrimination is possible. Universal access is less likely to arise without price discrimination but also health policy coordination becomes more important. This is due to the multiple equilibria which make the attainment of universal coverage within a given income range ambiguous. We also show that an increase in intra-country inequality does not always lead to less likely universal coverage when international price discrimination is possible.
BASE
In health markets, government policies tend to subsidize poorer groups. The purpose of this paper is to analyze the implications of an income-based subsidy policy on the incentives of countries to implement price arbitrage and of firms to provide market access to poorer groups.
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In: Contemporary issues in social science research
"This volume explores how we theorize, politicise, and practice peace and conflict discourses in the social sciences. As concepts, peace and conflict are intricately interwoven into a web of complementary discourses where states and other actors are able to negotiate, deliberate, and arbitrate their differences short of the overt and covert use of physical violence. The essays in this volume reflect this eclecticism: they reflect on concerns of contemporary conflicts in world politics; the dissection of the ideas of peace and power; the way peace studies join with global agencies; peace and conflict in connection to geopolitics and identity; the domestic basis of conflict in India and the South Asian theatre including class, social cleavages and gender. Further they also process elements like globalization, media, communication and films that help us engage with the popular tropes and discursive construction of the reality that play critical roles in how peace and violence are articulated and acted upon by the elites and the masses in societies. This volume will be of great interest to scholars and researchers of political science, international relations theory, peace and conflict studies, public policy, area studies. It will also be a key resource for bureaucrats, policy makers, think tanks and practitioners working in the field of international relations"--
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