The effect of reference price regulation on pharmaceutical prices in Finland
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School of Business |
Master's thesis
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Authors
Date
2018
Department
Major/Subject
Mcode
Degree programme
Economics
Language
en
Pages
58 + 27
Series
Abstract
This thesis considers the impact of the Finnish reference pricing system (RPS) on pharmaceutical wholesale prices. The policy, introduced in 2009, sets a maximum amount for the public reimbursement of pharmaceuticals assigned to the system. The reform was designed to improve the generic substitution practice that began in 2003. Using rich panel data for the years of 2006–2012, I apply the difference-in-differences method, exploiting the fact that some products never entered reference pricing (RP). I find statistically significant evidence that prices fell by 5.9% in 2009 and 8.7% in 2010, after which the effect disappeared. However, concern with parallel price trends between the treatment and control groups prevents causal interpretation of the results.Description
Thesis advisor
Toivanen, OttoKeywords
industrial organization, health economics, pharmaceuticals, reference pricing
Other note
Tutkielman tiivistelmätiedoissa näkyvä hyväksymisvuosi on 2019.
The year of approval showing in the abstract of the thesis is 2019.
The year of approval showing in the abstract of the thesis is 2019.