| 来源类型 | Working Paper |
| 规范类型 | 报告 |
| DOI | 10.3386/w17188 |
| 来源ID | Working Paper 17188 |
| Regulation and Welfare: Evidence from Paragraph IV Generic Entry in the Pharmaceutical Industry | |
| Lee G. Branstetter; Chirantan Chatterjee; Matthew Higgins | |
| 发表日期 | 2011-06-29 |
| 出版年 | 2011 |
| 语种 | 英语 |
| 摘要 | With increasing frequency, generic drug manufacturers in the United States are able to challenge the monopoly status of patent-protected drugs even before their patents expire. The legal foundation for these challenges is found in Paragraph IV of the Hatch-Waxman Act. If successful, these Paragraph IV challenges generally lead to large market share losses for incumbents and sharp declines in average market prices. This paper estimates, for the first time, the welfare effects of accelerated generic entry via these challenges. Using aggregate brand level sales data between 1997 and 2008 for hypertension drugs in the U.S. we estimate demand using a nested logit model in order to back out cumulated consumer surplus, which we find to be approximately $270 billion. We then undertake a counterfactual analysis, removing the stream of Paragraph IV facilitated generic products, finding a corresponding cumulated consumer surplus of $177 billion. This implies that gains flowing to consumers as a result of this regulatory mechanism amount to around $92 billion or about $133 per consumer in this market. These gains come at the expense to producers who lose, approximately, $14 billion. This suggests that net short-term social gains stands at around $78 billion. We also demonstrate significant cross-molecular substitution within the market and discuss the possible appropriation of consumer rents by the insurance industry. Policy and innovation implications are also discussed. |
| 主题 | Health, Education, and Welfare ; Health ; Poverty and Wellbeing ; Development and Growth ; Innovation and R& ; D |
| URL | https://www.nber.org/papers/w17188 |
| 来源智库 | National Bureau of Economic Research (United States) |
| 引用统计 | |
| 资源类型 | 智库出版物 |
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/574862 |
| 推荐引用方式 GB/T 7714 | Lee G. Branstetter,Chirantan Chatterjee,Matthew Higgins. Regulation and Welfare: Evidence from Paragraph IV Generic Entry in the Pharmaceutical Industry. 2011. |
| 条目包含的文件 | ||||||
| 文件名称/大小 | 资源类型 | 版本类型 | 开放类型 | 使用许可 | ||
| w17188.pdf（495KB） | 智库出版物 | 限制开放 | CC BY-NC-SA | 浏览 | ||
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