Effects of pharmaceutical price regulation: China's evidence between 1997 and 2008

Journal of the Asia Pacific Economy

Volumn 20, Issue 2, 2015, Pages 290-329

  Wu, Binzhen ^a   Zhang, Qiong ^b   Qiao, Xue ^a  

^a Tsinghua University   (China)

^b CENTRAL UNIVERSITY OF FINANCE AND ECONOMICS   (China)

Author keywords

household health expenditure; medicine imports; pharmaceutical firm's profitability; pharmaceutical price regulation

Indexed keywords

COMMODITY PRICE; HEALTH EXPENDITURE; IMPORT; MEDICINE; PHARMACEUTICAL INDUSTRY; PROFITABILITY; STANDARD (REGULATION);

CHINA;

EID: 84928588439     PISSN: 13547860     EISSN: 14699648     Source Type: Journal    
DOI: 10.1080/13547860.2014.964968     Document Type: Article

References (26)

1. Baltagi, B.H., and P. Wu. 1999. “Unequally Spaced Panel Data Regression with AR(1) Disturbances.” Econometric Theory 15 (6): 814–823.
2. Beck, N. 2008. “Time-Series Cross-Section Methods.” In The Oxford Handbook of Political Methodology, edited by Janet Box-Steffensmeir, Henry Brady, and David Collier, 475–493. London: Oxford University Press.
3. Borrell, J.R. 1999. “Pharmaceutical Price Regulation: A Study on the Impact of the Rate-of-Return Regulation in the UK.” Pharmacoeconomics 15 (3): 291–303.
4. Brekke, K.R., A.L. Grasdal, and T.H. Holmas. 2008. “Regulation and Pricing of Pharmaceuticals: Reference Pricing or Price Cap Regulation?” European Economic Review 53 (2): 170–185.
5. Danzon, P.M., and L.W. Chao. 2000. “Does Regulation Drive Out Competition in Pharmaceutical Markets?” Journal of Law and Economics 43 (2): 311–357.
6. Dong, Z., G. Liu, J. Wu, and J. Wu. 2008. “Effects of Drug Price Control Policies on Antibiotics: Evidence From Beijing.” China Journal of Pharmaceutical Economics 3: 7–12. (in Chinese)
7. Gregory, A.W., and B.E. Hansen. 1996. “Residual-Based Tests for Cointegration in Models With Regime Shifts.” Journal of Econometrics 70 (1): 99–126.
8. Hadri, K. 2000. “Testing for Stationarity in Heterogeneous Panel Data.” Econometrics Journal 3: 148–161.
9. Huang, Y., and W. Cao. 2008. “Another Research on China's Drug Price Regulations.” China's Price 11: 17–20. (in Chinese)
10. Im, K.S., M.H. Pesaran, and Y. Shin. 2003. “Testing for Unit Roots in Heterogeneous Panels.” Journal of Econometrics 115 (1): 53–74.
11. Kwiatkowski, D., P.C. Phillips, P. Schmidt, and Y. Shin. 1992. “Testing the Null Hypothesis of Stationarity Against the Alternative of a Unit Root: How Sure are We that Economic Time Series have a Unit Root?” Journal of Econometrics 54 (1): 159–178.
12. Levin, A., C.F. Lin, and C.S. Chu. 2002. “Unit Root Tests in Panel Data: Asymptotic and Finite-Sample Properties.” Journal of Econometrics 108 (1): 1–24.
13. Lopez-Casasnovas, G., and J. Puig-Junoy. 2000. “Review of the Literature on Reference Pricing.” Health Policy 54: 87–123.
14. Lumsdaine, R., and D. Papell. 1997. “Multiple Trend Breaks and the Unit Root Hypothesis.” Review of Economics and Statistics 79: 212–218.
15. Meng, Q., G. Cheng, L. Silver, X. Sun, C. Rehnberg, and Göran Tomson. 2005. “The Impact of China's Retail Drug Price Control Policy on Hospital Expenditures: A Case Study in Two Shandong Hospitals.” Health Policy and Planning 20 (3): 185–196.
16. Rane, W. 1998. “Price Control on Drugs is Essential.” Economic and Political Weekly 33 (42/43): 2697–2698.
17. Santerre, R.E., and J.A. Vernon. 2006. “Assessing Consumer Gains from a Drug Price Control Policy in the U.S.” Southern Economic Journal 73 (1): 233–245.
18. Shen, Q., and Q. Zhang. 2013. Patients’ Perceptions and Their Medical Behaviors Under Aspects of Social Stratification. School of Public Policy and Management at Tsinghua Univeristy working paper series 20131120. (in Chinese)
19. Skinner, B.J. 2005. Canada's Drug Price Paradox: The Unexpected Losses Caused by Government Interference in Pharmaceutical Markets. Digital document available at http://www.fraserinstitute.org/commerce.web/product_files/CanadasDrugPriceParadox.pdf.
20. Tang, S., and X. Zhang. 2008. “Consideration on the Medicine Price and Medicine Expenditure.” Chinese Health Economics 27 (3): 53–55. (in Chinese)
21. Vernon, J.A., R.E. Santerre, and C. Giaccotto. 2004. “Are Drug Price Controls Good for Your Health?” Medical Progress Report, No. 1, December, by Manhattan Institute for Policy Research, Center for Medical Progress.
22. Wooldridge, J.M. 2003. Introductory Econometrics: A Modern Approach. 2nd ed. Cincinnati, OH: South-Western, Division of Thomson Learning.
23. World Bank. 2004. Taking Stock of China's Rural Health Challenges. Briefing note series newsletter 33231, October. Washington, DC: World Bank.
24. Yu, L., Z. Yu, and K. Tian. 2007. “Puzzle for High Medicines Prices in China.” Research on Economics and Management 9: 10–17. (in Chinese)
25. Zhu, H. 2010. “When Would Be the End for Medicines with Hight Profits? (Baoli Yaojia Heshiliao in Chinese).” Online at http://view.news.qq.com/a/20100603/000008.htm.
26. Zivot, E., and D.W.K. Andrews. 1992. “Further Evidence on the Great Crash, the Oil-Price Shock, and the Unit Root Hypothesis.” Journal of Business and Economic Statistics 10 (3): 251–270.