CEU Electronic Theses and Dissertations, 2009
| Author | Alikhanova, Saida |
|---|---|
| Title | The effect of monopolization of pharmaceutical industry on health care in the OECD countries |
| Summary | The present thesis addresses the subject of monopoly in pharmaceutical industry, the sources and consequences of its presence for health care. According to Schumpeter hypothesis (1942) high concentration in the industry leads to higher innovation, because company-monopolist uses its monopoly surplus for costly Research and Development. This can be very efficient in the pharmaceutical industry, because of great importance of innovation and new drugs’ development. However, in practice through last decades the process of concentration in the pharmaceutical industry goes together with the decreasing number of major innovation and increasing prices of drugs. In this thesis I analyze this question of the effect of the presence of monopoly power empirically using the OECD Heath Dataset by panel data econometric methods OLS and fixed effect. My analysis shows that higher number of big companies originated in the country is associated with significantly higher expenses on pharmaceuticals. In the same time I do not estimate the significant effect of the higher number of big pharmaceutical companies on the consumption of pharmaceuticals in real term (daily dosage), sales and R&D activity of pharmaceutical sector. |
| Supervisor | Mihalyi, Peter |
| Department | Economics MA |
| Full text | https://www.etd.ceu.edu/2009/alikhanova_saida.pdf |
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