Cross-national price differences for pharmaceuticals: how large, and why?

The Level Of Income Appears To Have No Consistent Bearing On Pharmaceutical Prices Across Countries

“…It may simply reflect a substitution effect, as consumers in each country purchase relatively more of those pharmaceuticals that are comparatively cheap there. 8 In our study, all Laspeyres index values exceeded their Paasche index counterparts, which indicates that as prices rose, the consumption of the drugs in our sample fell-confirmation that the drugs we selected were not atypical products.…”

“…To resolve the inherent difficulties in comparing very different products within a market (in our case, the pharmaceutical market) and a heterogeneous product mix across countries, we used an approach developed by Patricia Danzon and colleagues 8,9 to create broadly representative price indexes that were comparable for each country. We constructed indexes to describe the relative difference in prices for pharmaceuticals in middle-income countries compared to the base countries of France, the United Kingdom, the United States, and French West Africa.…”

Testing for regional convergence of agricultural land prices

“…A standard approach to analyse the LOP for heterogeneous good is to run a hedonic price regression first to correct for different characteristics (Danzon and Chao, 2000;Verboven, 2005, 2004;Lutz, 2004;Waights, 2014). For our dataset, we consider the following regression model assuming a constant effect of soil quality and a county-specific linear trend:…”

Diffusion of pharmaceuticals: cross-country evidence of anti-TNF drugs

“…Jönsson et al (2008) o¤er a 3 We also control for time-invariant product-speci…c factors, such as the treatment e¤ects, side-e¤ects, administration form, that are likely to explain di¤erences in consumption across the anti-TNF brands, as well as time trends in consumption. 4 The empirical literature on cross-country di¤erences in the prices of pharmaceuticals is much larger, see e.g., Danzon (1999), Danzon and Chao (2000), Danzon and Furukawa (2003), and . 5 There are some studies on di¤usion of pharmaceuticals within countries, see e.g., Berndt et al (2003) and Chintagunta et al (2009). descriptive analysis of the sales of anti-TNF drugs in a wide set of countries (also outside Europe) for the period of 2000 to 2006.…”

“…Other countries (Denmark, France, Germany, Sweden and Switzerland) rely more on indirect price controls through negotiations with the pharmaceutical companies or the design of reimbursement scheme, such as reference pricing (interal referencing). 12 Finally, the prevalence of diseases varies across countries (and also ethnicities). Epimediological studies tend to …nd that the prevalence of autoimmune diseases such as rheumatoid arthitis and psoriasis are substantially lower in Southern European countries compared to Northern European countries.…”