Regulation of pharmaceutical prices: Evidence from a reference price reform in Denmark

Arbeitspapier

On April 1, 2005, Denmark changed the way references prices, a main determinant of reimbursements for pharmaceutical purchases, are calculated. The previous reference prices, which were based on average EU prices, were substituted to minimum domestic prices. Novel to the literature, we estimate the joint effects of this reform on prices and quantities. Prices decreased more than 26 percent due to the reform, which reduced patient and government expenditures by 3.0 percent and 5.6 percent, respectively, and producer revenues by 5.0 percent. The prices of expensive products decreased more than their cheaper counterparts, resulting in large differences in patient benefits from the reform.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ZEW Discussion Papers ; No. 10-062

Classification and Topics

• Classification: Wirtschaft ; Health: Government Policy; Regulation; Public Health ; Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models
• Subject: pharmaceutical markets ; regulation ; co-payments ; reference pricing ; asymmetric welfare effects ; Pharmazeutische Industrie ; Regulierung ; Pharmazeutisches Produkt ; Preis ; Wohlfahrtseffekt ; Dänemark

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Kaiser, Ulrich ; Mendez, Susan J. ; Rønde, Thomas
• Event: Veröffentlichung
• (who): Zentrum für Europäische Wirtschaftsforschung (ZEW)
• (where): Mannheim
• (when): 2010

Further information

• Handle: http://hdl.handle.net/10419/41440
• Last update: 10.03.2025, 11:44 AM CET