Working Paper No. 622

Parallel Imports and the Pricing of Pharmaceutical Products: Evidence from the European Union

Publicerad: June 15, 2004Antal sidor: 36Nyckelord: Parallel Imports; International Arbitrage; Drug Pricing; Pharmaceutical Products JEL-koder: F12; I11; L12

Parallel Imports and the Pricing of Pharmaceutical Products: Evidence from the European Union Mattias Ganslandt and Keith E. Maskus


We consider policy issues regarding parallel imports (PIs) of brand-name pharmaceuticals in the European Union, where such trade is permitted. We develop a simple model in which an original manufacturer competes in its home market with PI firms. The model suggests that for small trade costs the original manufacturer will accommodate the import decisions of parallel traders and that the price in the home market falls as the volume of parallel imports rises. Using data from Sweden we find that the prices of drugs subject to competition from parallel imports fell relative to other drugs over the period 1994 - 1999. Econometric analysis finds that parallel imports significantly reduced manufacturing prices, by from 12 to 19 percent. There is evidence that this effect increases with multiple PI entrants.

 

Glädjeparadoxen

Historien om skolans uppgång, fall och möjliga upprättelse

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Den här boken, författad av Gabriel Heller Sahlgren och Nima Sanadaji, spårar rötterna till den svenska skolans problem via en djupdykning i forskning och modern historia. På 1800-talet slog den progressiva utbildningsfilosofin igenom, med fokus på glädje, elevdemokrati och elevledd undervisning. Problemet var bara att den nya pedagogiken inte fungerade som det var tänkt. Forskningen tyder inte på att elever lär sig mer när de har roligt.

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