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In health markets, government policies tend to subsidize poorer groups. The purpose of this paper is to analyze the implications of an income-based subsidy policy on the incentives of countries to implement price arbitrage and of firms to provide market access to poorer groups. --...
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We present a policy game where a Rich country has a higher capacity than a Poor country to commit to certain elements of health policy such as providing income related price subsidies and allowing parallel imports (PI). When allowing PI is not a choice for the Poor country, the Rich country...
Persistent link: https://www.econbiz.de/10008749658
Governments often subsidize poorer groups in society to ensure their access to new drugs. We analyze here the optimal income-based price subsidies in a strategic environment. We show that asymmetric health systems can arise even though countries are ex-ante symmetric when international price...
Persistent link: https://www.econbiz.de/10003814424