Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/307797 
Year of Publication: 
2023
Series/Report no.: 
Helsinki GSE Discussion Papers No. 16
Publisher: 
Helsinki Graduate School of Economics, Helsinki
Abstract: 
Quasi-experimental evidence on the effectiveness of price regulation policies in curbing pharmaceutical expenditure is scarce. We analyze widely utilized generic substitution and reference price policies using data from the Nordic countries. Constructing treatment and control groups by matching data across countries by active ingredients and employing difference-in-difference methods on market-level observations, we find that expenditure per dose decreases by 40% moving from the laxest to the strictest regime. Prices decrease less: Reallocation of demand to cheaper products likely explains the difference. We find no adverse effects on pharmaceutical availability and non-existent or positive quantity effects.
Subjects: 
pharmaceutical expenditure
pharmaceutical pricing
generic competition
reference pricing
regulation
JEL: 
I11
I18
H51
L51
L65
C23
ISBN: 
978-952-7543-15-3
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.