The welfare impact of parallel imports: a structural approach applied to the German market for oral anti-diabetics.
Health Econ
; 23(9): 1036-57, 2014 Sep.
Article
en En
| MEDLINE
| ID: mdl-25139795
ABSTRACT
We investigate the welfare impact of parallel imports using a large panel dataset containing monthly information on sales, ex-factory prices, and further product characteristics for all 649 anti-diabetic drugs sold in Germany between 2004 and 2010. We estimate a two-stage nested logit model of demand, and on the basis of an oligopolistic model of multi-product firms, we then recover the marginal costs and markups. We finally evaluate the effect of the parallel imports' policy by calculating a counterfactual scenario without parallel trade. According to our estimates, parallel imports reduce the prices for patented drugs by 11% and do not have a significant effect on prices for generic drugs. This amounts to an increase in the demand-side surplus by 19 million per year (or 130 million in total), which is relatively small compared with the average annual market size of around 227 million based on ex-factory prices. The variable profits for the manufacturers of original drugs from the German market are reduced by 18 million (or 37%) per year when parallel trade is allowed, yet only one third of this difference is appropriated by the importers.
Palabras clave
Texto completo:
1
Colección:
01-internacional
Base de datos:
MEDLINE
Contexto en salud:
1_ASSA2030
Problema de salud:
1_financiamento_saude
Asunto principal:
Industria Farmacéutica
/
Hipoglucemiantes
Tipo de estudio:
Health_economic_evaluation
/
Prognostic_studies
Límite:
Humans
País/Región como asunto:
Europa
Idioma:
En
Revista:
Health Econ
Asunto de la revista:
SERVICOS DE SAUDE
Año:
2014
Tipo del documento:
Article
País de afiliación:
Alemania