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Kim De Witte Pharmaceutical Price Differences and Control Policies


This study compares prices of pharmaceuticals between different countries (Belgium, the Netherlands, Germany, United Kingdom and New Zealand). Different factors related to the product, the market situation, the economic environment and the price control policies are taken into account, using hedonic regressions. Strong differences between the ex-factory prices in the different countries are found. This is mainly due to market failures. In response to these failures all selected countries developed price containment policies. The study analyzes the effects of different price control policies by measuring prices and policies over time.

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