Price cap regulation in the Colombian pharmaceutical market: An impact evaluation

We evaluate the impact of a price cap regulation implemented in the Colombian pharmaceutical market between 2011 and 2014. To do so, we take advantage of a unique data set where we observe three sources of variation: i) differences across eighteen groups in the Anatomical Therapeutic Chemical (ATC)...

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Autores:
Bardey, David
Harker, Arturo
Zuluaga, Daniela
Tipo de recurso:
Work document
Fecha de publicación:
2021
Institución:
Universidad de los Andes
Repositorio:
Séneca: repositorio Uniandes
Idioma:
eng
OAI Identifier:
oai:repositorio.uniandes.edu.co:1992/49521
Acceso en línea:
http://hdl.handle.net/1992/49521
Palabra clave:
Pharmaceutical market
Price cap regulation
Impact evaluation
I18, I13, H51, D02
Rights
openAccess
License
http://creativecommons.org/licenses/by-nc-nd/4.0/
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spelling Al consultar y hacer uso de este recurso, está aceptando las condiciones de uso establecidas por los autores.http://creativecommons.org/licenses/by-nc-nd/4.0/info:eu-repo/semantics/openAccesshttp://purl.org/coar/access_right/c_abf2Bardey, Davideb5d55eb-0c4d-4330-b74c-b4e0ef0037ac500Harker, Arturo04855a48-06ee-4d41-9838-4e5af80a849e500Zuluaga, Daniela3aa61c67-aebd-49af-9916-98d5e5a004d25002021-03-15T13:35:08Z2021-03-15T13:35:08Z2021http://hdl.handle.net/1992/495211657-719110.57784/1992/49521instname:Universidad de los Andesreponame:Repositorio Institucional Sénecarepourl:https://repositorio.uniandes.edu.co/We evaluate the impact of a price cap regulation implemented in the Colombian pharmaceutical market between 2011 and 2014. To do so, we take advantage of a unique data set where we observe three sources of variation: i) differences across eighteen groups in the Anatomical Therapeutic Chemical (ATC) classification system of the WHO, ii) the existence of regulated (treated) and unregulated (control) groups within each of these eighteen ATC groups, and iii) differences in time (before and after regulation) for the eighteen ATC groups. A triple differences model with Fixed time effects and cluster errors is used to identify the impact of this regulation. We Find that the price-cap regulation contributed to reduce prices in three of the eighteen groups and increase average prices for ten of them. We confirm then that the focal point effect generated by a price-cap regulation can generate unintended distortions. More specifically, our results reveal that the implementation of this price cap regulation potentially increased -public and private- expenditure by 30%, only for the 2,422 drugs in the eighteen ATC groups we study.42 páginasengUniversidad de los Andes, Facultad de Economía, CEDEDocumentos CEDE No.09 Marzo de 2021https://ideas.repec.org/p/col/000089/019117.htmlPrice cap regulation in the Colombian pharmaceutical market: An impact evaluationDocumento de trabajoinfo:eu-repo/semantics/workingPaperhttp://purl.org/coar/resource_type/c_8042http://purl.org/coar/version/c_970fb48d4fbd8a85Texthttps://purl.org/redcol/resource_type/WPPharmaceutical marketPrice cap regulationImpact evaluationI18, I13, H51, D02Facultad de EconomíaPublicationORIGINALdcede2021-09.pdfdcede2021-09.pdfapplication/pdf9335937https://repositorio.uniandes.edu.co/bitstreams/610cff00-3105-4c92-a772-8c957f9435b6/download4f30bd89ba36885c8317086188ce9954MD51THUMBNAILdcede2021-09.pdf.jpgdcede2021-09.pdf.jpgIM Thumbnailimage/jpeg17503https://repositorio.uniandes.edu.co/bitstreams/71712bed-eb3e-4c66-a0ff-f323e58d3535/download28046679bab5bd8c41bf51a499b25403MD55TEXTdcede2021-09.pdf.txtdcede2021-09.pdf.txtExtracted texttext/plain75218https://repositorio.uniandes.edu.co/bitstreams/4b4d6707-8f3b-4da2-be75-aa7616b11ee8/download0036d72d3a7b5a0a932fcbaac81ae19eMD541992/49521oai:repositorio.uniandes.edu.co:1992/495212024-06-04 15:28:49.096http://creativecommons.org/licenses/by-nc-nd/4.0/open.accesshttps://repositorio.uniandes.edu.coRepositorio institucional Sénecaadminrepositorio@uniandes.edu.co
dc.title.none.fl_str_mv Price cap regulation in the Colombian pharmaceutical market: An impact evaluation
title Price cap regulation in the Colombian pharmaceutical market: An impact evaluation
spellingShingle Price cap regulation in the Colombian pharmaceutical market: An impact evaluation
Pharmaceutical market
Price cap regulation
Impact evaluation
I18, I13, H51, D02
title_short Price cap regulation in the Colombian pharmaceutical market: An impact evaluation
title_full Price cap regulation in the Colombian pharmaceutical market: An impact evaluation
title_fullStr Price cap regulation in the Colombian pharmaceutical market: An impact evaluation
title_full_unstemmed Price cap regulation in the Colombian pharmaceutical market: An impact evaluation
title_sort Price cap regulation in the Colombian pharmaceutical market: An impact evaluation
dc.creator.fl_str_mv Bardey, David
Harker, Arturo
Zuluaga, Daniela
dc.contributor.author.none.fl_str_mv Bardey, David
Harker, Arturo
Zuluaga, Daniela
dc.subject.keyword.none.fl_str_mv Pharmaceutical market
Price cap regulation
Impact evaluation
topic Pharmaceutical market
Price cap regulation
Impact evaluation
I18, I13, H51, D02
dc.subject.jel.none.fl_str_mv I18, I13, H51, D02
description We evaluate the impact of a price cap regulation implemented in the Colombian pharmaceutical market between 2011 and 2014. To do so, we take advantage of a unique data set where we observe three sources of variation: i) differences across eighteen groups in the Anatomical Therapeutic Chemical (ATC) classification system of the WHO, ii) the existence of regulated (treated) and unregulated (control) groups within each of these eighteen ATC groups, and iii) differences in time (before and after regulation) for the eighteen ATC groups. A triple differences model with Fixed time effects and cluster errors is used to identify the impact of this regulation. We Find that the price-cap regulation contributed to reduce prices in three of the eighteen groups and increase average prices for ten of them. We confirm then that the focal point effect generated by a price-cap regulation can generate unintended distortions. More specifically, our results reveal that the implementation of this price cap regulation potentially increased -public and private- expenditure by 30%, only for the 2,422 drugs in the eighteen ATC groups we study.
publishDate 2021
dc.date.accessioned.none.fl_str_mv 2021-03-15T13:35:08Z
dc.date.available.none.fl_str_mv 2021-03-15T13:35:08Z
dc.date.issued.none.fl_str_mv 2021
dc.type.spa.fl_str_mv Documento de trabajo
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dc.identifier.doi.none.fl_str_mv 10.57784/1992/49521
dc.identifier.instname.spa.fl_str_mv instname:Universidad de los Andes
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url http://hdl.handle.net/1992/49521
identifier_str_mv 1657-7191
10.57784/1992/49521
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dc.language.iso.none.fl_str_mv eng
language eng
dc.relation.ispartofseries.none.fl_str_mv Documentos CEDE No.09 Marzo de 2021
dc.relation.repec.spa.fl_str_mv https://ideas.repec.org/p/col/000089/019117.html
dc.rights.uri.*.fl_str_mv http://creativecommons.org/licenses/by-nc-nd/4.0/
dc.rights.accessrights.spa.fl_str_mv info:eu-repo/semantics/openAccess
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http://purl.org/coar/access_right/c_abf2
eu_rights_str_mv openAccess
dc.format.extent.none.fl_str_mv 42 páginas
dc.publisher.none.fl_str_mv Universidad de los Andes, Facultad de Economía, CEDE
publisher.none.fl_str_mv Universidad de los Andes, Facultad de Economía, CEDE
institution Universidad de los Andes
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