Are legislators able to meet efficiency goals?: an analysis of the pharmaceutical industry
Independent thesis Advanced level (degree of Magister)Student thesisAlternative title
Lyckas lagstiftare skapa effektiva lagar? : en analys av läkemedelssektorn (Swedish)
During the last decades, legislators have tried to meet the goal of increased R&D in the pharmaceutical industry through an extension of the patent length. In parallel, an attempt to minimise ex post social costs has been made through the introduction of a shortened drug approval process for generic drugs as well as a so-called Bolar provision, giving generic producers earlier access to patented information. However, one can ask how efficient a patent extension possibility has been to meet the goal of increased R&D. Correspondingly, what effects on social costs can we expect from the introduction of an abbreviated approval process and the Bolar provision? These are questions that are dealt with in this thesis. I argue that the impact of the legislative changes have led to a decrease of ex post social cost. However, I will also show that this has lead to a detriment of ex ante R&D incentives and therefore a negative result on social welfare.
Place, publisher, year, edition, pages
Ekonomiska institutionen , 2004.
Master Thesis in Business Administration (Magisteruppsats från Internationella ekonomprogrammet), 2004:35
Business and economics, legislation, law and economics, pharmaceutical, R&D, efficiency, incentives, social welfare
Economics and Business
IdentifiersURN: urn:nbn:se:liu:diva-2443OAI: oai:DiVA.org:liu-2443DiVA: diva2:19775