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 Principales: Bardey, David, Harker, Arturo, Zuluaga, Daniela
Formato: Desconocido (Unknown)
Lenguaje:Inglés (English)
Publicado: Universidad de los Andes, Facultad de Economía, CEDE 2021
Materias:
Acceso en línea:http://hdl.handle.net/1992/49521
id ir-1992-49521
recordtype dspace
spelling ir-1992-495212021-03-16T07:33:11Z Price cap regulation in the Colombian pharmaceutical market: An impact evaluation Bardey, David Harker, Arturo Zuluaga, Daniela Pharmaceutical market Price cap regulation Impact evaluation I18, I13, H51, D02 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. 2021-03-15T13:35:08Z 2021-03-15T13:35:08Z 2021 document publishedVersion http://hdl.handle.net/1992/49521 1657-7191 eng Documentos CEDE No.09 Marzo de 2021 Al consultar y hacer uso de este recurso, está aceptando las condiciones de uso establecidas por los autores. openAccess Universidad de los Andes, Facultad de Economía, CEDE instname:Universidad de los Andes reponame:Repositorio Institucional Séneca
institution Universidad de los Andes
collection DSpace
language Inglés (English)
topic Pharmaceutical market
Price cap regulation
Impact evaluation
I18, I13, H51, D02
spellingShingle Pharmaceutical market
Price cap regulation
Impact evaluation
I18, I13, H51, D02
Bardey, David
Harker, Arturo
Zuluaga, Daniela
Price cap regulation in the Colombian pharmaceutical market: An impact evaluation
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.
format Desconocido (Unknown)
author Bardey, David
Harker, Arturo
Zuluaga, Daniela
author_facet Bardey, David
Harker, Arturo
Zuluaga, Daniela
author_sort Bardey, David
title Price cap regulation in the Colombian pharmaceutical market: An impact evaluation
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
publisher Universidad de los Andes, Facultad de Economía, CEDE
publishDate 2021
url http://hdl.handle.net/1992/49521
_version_ 1705932362454401024
score 11,828437