Replication data for: Identifying Industry Margins with Price Constraints: Structural Estimation on Pharmaceuticals
Principal Investigator(s): View help for Principal Investigator(s) Pierre Dubois; Laura Lasio
Version: View help for Version V1
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Project Citation:
Dubois, Pierre, and Lasio, Laura. Replication data for: Identifying Industry Margins with Price Constraints: Structural Estimation on Pharmaceuticals. Nashville, TN: American Economic Association [publisher], 2018. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-12. https://doi.org/10.3886/E112976V1
Project Description
Summary:
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We develop a structural model to investigate the effects of pharmaceutical price regulation on demand and on manufacturers' price-setting behavior in France. We estimate price-cost margins in a regulated market with price constraints and infer whether these constraints are binding, exploiting cost restrictions across drugs, which come from observing the same drugs in potentially price-constrained markets (France) and in markets where prices are unregulated (US and Germany). Our counterfactual simulations suggest that price constraints generated modest savings for anti-ulcer drugs in 2003–2013 (2 percent of total expenses), relative to a free pricing scenario, and shifted consumption from generic to branded drugs.
Scope of Project
JEL Classification:
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C51 Model Construction and Estimation
D24 Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
I18 Health: Government Policy; Regulation; Public Health
L13 Oligopoly and Other Imperfect Markets
L51 Economics of Regulation
L65 Chemicals; Rubber; Drugs; Biotechnology; Plastics
C51 Model Construction and Estimation
D24 Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
I18 Health: Government Policy; Regulation; Public Health
L13 Oligopoly and Other Imperfect Markets
L51 Economics of Regulation
L65 Chemicals; Rubber; Drugs; Biotechnology; Plastics
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