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Has the European Union achieved a single pharmaceutical market?

Author: Aysegul Timur; Gabriel Picone; Jeff DeSimone; National Bureau of Economic Research.
Publisher: Cambridge, Mass. : National Bureau of Economic Research, ©2010.
Series: Working paper series (National Bureau of Economic Research), no. 16261.
Edition/Format:   eBook : Document : EnglishView all editions and formats
Summary:
This paper explores price differences in the European Union (EU) pharmaceutical market, the EU's fifth largest industry. With the aim of enhancing quality of life along with industry competitiveness and R & D capability, many EU directives have been adopted to achieve a single EU-wide pharmaceutical market. Using annual 1994-2003 data on prices of molecules that treat cardiovascular disease, we examine whether drug  Read more...
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Details

Material Type: Document, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: Aysegul Timur; Gabriel Picone; Jeff DeSimone; National Bureau of Economic Research.
OCLC Number: 656571433
Notes: "August 2010."
Title from http://www.nber.org/papers/16261 viewed Aug. 18, 2010.
Description: 1 online resource (31 pages) : illustrations.
Series Title: Working paper series (National Bureau of Economic Research), no. 16261.
Responsibility: Aysegul Timur, Gabriel Picone, Jeffrey S. DeSimone.

Abstract:

This paper explores price differences in the European Union (EU) pharmaceutical market, the EU's fifth largest industry. With the aim of enhancing quality of life along with industry competitiveness and R & D capability, many EU directives have been adopted to achieve a single EU-wide pharmaceutical market. Using annual 1994-2003 data on prices of molecules that treat cardiovascular disease, we examine whether drug price dispersion has indeed decreased across five EU countries. Hedonic regressions show that over time, cross-country price differences between Germany and three of the four other EU sample countries, France, Italy and Spain, have declined, with relative prices in all three as well as the fourth country, UK, rising during the period. We interpret this as evidence that the EU has come closer to achieving a single pharmaceutical market in response to increasing European Commission coordination efforts.

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