A new demand model which accounts for the effect of the age of drugs on pharmaceutical demand is provided. Within this framework the problem of persistence in consumption of original branded drugs and a particular case of intra-molecular substitution are analyzed. I find that interacting price...

Aim of this paper is to estimate price-cost margin in the Finnish pharmaceutical industry. The estimation is based on the method developed by Hall (1988), who shows that, under constant returns to scale, the total factor productivity depends on the growth rate of output-capital ratio if the...