Scandinavian Working Papers in Economics
Working Papers in Economics,
University of Gothenburg, Department of Economics
No 496: Parallel Imports and Mandatory Substitution Reform: A kick or a muff for price competition in pharmaceuticals
David Granlund () and Miyase Yesim Köksal ()
Additional contact information
David Granlund: The Swedish Retail Institute and Umeå University, Postal: The Swedish Retail Institute (HUI), SE-103 29 Stockholm, Sweden; and , Department of Economics , Umeå University , SE 901 87 Umeå
Miyase Yesim Köksal: Department of Economics, School of Business, Economics and Law, Göteborg University, Postal: Box 640, SE 40530 GÖTEBORG
Abstract: What has been the effect of competition from parallel imports on prices of locally-sourced onpatent drugs? Did the 2002 Swedish mandatory substitution reform increase this competition? To answer these questions, we carried out difference-in-differences estimation on monthly data for a panel of all on-patent prescription drugs sold in Sweden during the 40 months from January 2001 through April 2004. On average, facing competition from parallel imports caused a 15-17% fall in price. While the reform increased the effect of competition from parallel imports, it was only by 0.9%. The reform, however, did increase the effect of therapeutic competition by 1.6%.
Keywords: parallel imports; pharmaceutical drugs; price competition; reference pricing; therapeutic competition
32 pages, April 18, 2011
Full text files
25497 HTML file
Questions (including download problems) about the papers in this series should be directed to Jessica Oscarsson ()
Report other problems with accessing this service to Sune Karlsson ().
RePEc:hhs:gunwpe:0496This page generated on 2024-11-14 18:33:27.