Please use this identifier to cite or link to this item:
http://hdl.handle.net/10071/27838
Author(s): | Mello-Sampayo, F. de. Vale, S. de S. Camões, F. |
Date: | 2013 |
Title: | Substitutability between drugs, innovation and growth in the pharmaceutical industry |
Book title/volume: | 10th EBES Conference Proceedings |
Pages: | 13 - 28 |
Event title: | 10th EBES Conference |
Reference: | Mello-Sampayo, F. de., Vale, S. de S., & Camões, F. (2013). Substitutability between drugs, innovation and growth in the pharmaceutical industry. In 10th EBES Conference (pp. 17-28). EBES. |
ISBN: | 978-605-64002-1-6 |
Keywords: | Monopolistic competition Pharmaceutical industry Fiscal policy |
Abstract: | This paper establishes a relationship between the elasticity of demand for pharmaceutical intermediates and the growth rate for these intermediates variety. We build a model that contains two sectors, one final good sector producing treatments, and one intermediate goods sector producing a differentiated input used in the final treatment. The effects on the medicaments varieties' growth rate of the introduction of a fiscal instrument over pharmaceutical producers' profits are discussed. When the fiscal instrument is a tax over intermediate firms' profits, R&D by firms in the pharmaceutical goods sector results in positive growth provided there is enough substitutability among intermediates assured by a patent system. Otherwise, a subsidy over pharmaceutical firms' profits should be considered to generate positive growth of innovation in medicaments. |
Peerreviewed: | yes |
Access type: | Open Access |
Appears in Collections: | BRU-CRI - Comunicações a conferências internacionais |
Files in This Item:
File | Size | Format | |
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conferenceobject_61622.pdf | 1,02 MB | Adobe PDF | View/Open |
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