PP170 Quantifying the Life-Cycle Value of Second Generation Antipsychotics

2019 ◽  
Vol 35 (S1) ◽  
pp. 69-69
Author(s):  
Mikel Berdud ◽  
Niklas Wallin-Bernhardsson ◽  
Bernarda Zamora ◽  
Peter Lindgren ◽  
Adrian Towse
Keyword(s):  
Life Cycle ◽  
Cost Effectiveness ◽  
Consumer Surplus ◽  
Value Added ◽  
Dynamic Nature ◽  
Patent Expiration ◽  
Total Surplus ◽  
Long Run ◽  
Second Generation Antipsychotics ◽  
Producer Surplus

IntroductionWe estimate the life-cycle value of risperidone – Second-Generation Antipsychotics (SGA) – to balance the view that cost per Quality-Adjusted Life Year (QALY) estimates at launch are enough to guide access decisions. Study results will also drive discussion on access and price to recognize the dynamic nature of pharmaceutical pricing over the long-run.MethodsWe estimated number of patients treated for schizophrenia with risperidone in Sweden and the United Kingdom (UK) between 1994-2017 based on usage data form national statistics and volume sales data from IQVIA. We collected data from literature on the effectiveness (QALYs) and costs (EUR 2017) of risperidone (SGA) and haloperidol – First-Generation antipsychotic (FGA). We estimate the life-cycle value added by risperidone versus haloperidol, and the life-cycle distribution of the social surplus between the payer (consumer surplus) and the innovator (producer surplus).ResultsWe estimated the consumer surplus, the producer surplus, the Net Monetary Benefit (NMB) and Incremental Cost-Effectiveness Ratio (ICER) at each year and in aggregate terms (1993-2017). For the UK the producer surplus was ~28 percent out of the total surplus before patent expiration and five percent after patent expiration. In Sweden, producer surplus was around 6 percent out of the total surplus before patent expiration and one percent thereafter. In both countries, during the life-cycle of risperidone, the NMB per patient increased and the ICER decreased as a response to: (i) the launch of Risperidone Long-Acting Injectable (RLAI); and (ii) the generic entry.ConclusionsThe value added by risperidone increased during the life-cycle due to the launch of RLAI and the generic competition. This suggests that, considering the entire life-cycle, the value added by SGAs to the system is higher than the expected value estimated using cost-effectiveness analysis at launch. Pricing and reimbursement decisions should take into account the dynamic nature of pharmaceutical markets and the value added by innovative medicines over the long-run.

scholarly journals Welfare Effect of Adaptation Policy for Rice Price Variation under Climate Change in Bangladesh

2021 ◽  
pp. 26-40
Author(s):  
M. A. Salam ◽  
Jun Furuya ◽  
Shintaro Kobayashi
Keyword(s):  
Social Welfare ◽  
Consumer Surplus ◽  
Price Policy ◽  
Welfare Effect ◽  
Adaptation Policy ◽  
Price Variation ◽  
Total Surplus ◽  
Rice Price ◽  
Producer Surplus ◽  
Support Price

This study was designed to evaluate the welfare effect of the climate adaptation policy for rice price variation in terms of producer surplus, consumer surplus, and net change in social welfare in Bangladesh, using the partial equilibrium model of the adaptation policy. The long-term trend of climate and policy adaptation for climate impact on price variation of the rice in Bangladesh is taken into economic model approach. The base period of this research is 1977-2009 and the extrapolation period is 2010-2030. To execute the designed analysis, the time series data from national and international organization are used. The results for the support price policy show that the total surplus that producers receive is equivalent to USD 1,164 million, substantially higher than the consumer surplus (USD 763 million) during the period 2010–2030. The net change in the social welfare owing to the support price policy is equivalent to –1483 million (USD) during the period 2010–2030. Moreover, analysis of the subsidized price policy shows that the total surplus that consumers receive (USD 1,958 million) is relatively higher than the producer surplus (USD 1,738 million) in the same period. The net change in social welfare owing to the subsidized price policy (–197 million USD) is much higher than that owing to price support –1483 million (USD). Implementing the dual price policy would result in a much higher net change in the society’s welfare (–1185 million USD) compared to that possible through each policy separately. In conclusion, these adaptation and price stabilization policies are recognized to be more useful in mitigating the severe price rise and fall in the future food market, in favour of both producers and consumers. Even though the change in net social welfare is higher, the higher cost of policy budget is imperative to make stable food supply and security.

scholarly journals PMH28 ASSESSING THE LIFE-CYCLE VALUE ADDED OF SECOND-GENERATION ANTIPSYCHOTICS IN SWEDEN AND THE UK: THE CASE OF RISPERIDONE

2019 ◽  
Vol 22 ◽  
pp. S685
Author(s):  
M. Berdud ◽  
N. Wallin Bernhardsson ◽  
M.B. Zamora Talaya ◽  
P. Lindgren ◽  
A. Towse
Keyword(s):  
Life Cycle ◽  
Second Generation ◽  
Value Added ◽  
Second Generation Antipsychotics ◽  
The Uk

scholarly journals Economic Surplus and the Distributional Consequences of Deregulating Tobacco Production

1990 ◽  
Vol 22 (2) ◽  
pp. 117-127 ◽  
Author(s):  
S. Sureshwaran ◽  
C.S. Thompson ◽  
M.S. Henry ◽  
M.I. Loyd
Keyword(s):  
South Carolina ◽  
Consumer Surplus ◽  
Value Added ◽  
Government Programs ◽  
Economic Surplus ◽  
Cropping Patterns ◽  
Long Run ◽  
Tobacco Production ◽  
Alternative Approach

Abstract Reservations on technical and theoretical grounds in the use of the consumer surplus approach to measure benefits of government programs have often appeared in the literature. Therefore, this paper uses an alternative approach in a case study to estimate the annual economic surplus created in South Carolina from deregulating tobacco production. Impacts of deregulation on cropping patterns and income on representative tobacco farms, and distribution of benefits in the economy are examined. Results of this study indicate that deregulation stimulates the economy and would increase the net value added by $5.8 million in the long run.

Open Door System and Endogenous Growth in Indian Economy: An Empirical Analysis on the Role of Human Capital and R&D in Explaining Industrial Productivity

2021 ◽  
Vol 46 (1) ◽  
pp. 24-37
Author(s):  
Arjun K. ◽  
Sanjay Kumar ◽  
A. Sankaran ◽  
Mousumi Das
Keyword(s):  
Human Capital ◽  
Exchange Rate ◽  
Real Exchange Rate ◽  
Endogenous Growth ◽  
Value Added ◽  
Capital Formation ◽  
Knowledge Capital ◽  
Test Technique ◽  
Long Run ◽  
The Impact

The present study investigates the impact of human capital, knowledge capital which is a function of human capital, and real exchange rate scenario in explaining long-run industrial total factor productivity (TFP) from 1980 to 2015 on the theoretical basis of the open endogenous growth model. The variables employed in the contemporary study include manufacturing value added (MNVA) as industrial output measure, gross fixed capital formation (GFCF) as a measure of capital and labour input which is measured using employment data. Gross enrolment ratio (GER) is taken as a measure for human capital formation, expenditure on research and development (R&D) as a proxy for knowledge capital, and real exchange rate indicates global economic shocks. The study involves estimating TFP for Industrial Sector during the post-liberalization period by employing Cobb-Douglas production function. The ARDL bounds test technique for cointegration revealed long-run relation among the varying factors studied. The Toda-Yamamoto causality test concluded bi-directional causality running between, R&D expenditure and Industrial TFP which sends a strong signal to the policymakers for a well-framed long-term integrated approach for human & knowledge capital formation which will act as a strong impetus for manufacturing firms to come up in terms of augmenting production and productivity and expanding foreign market horizon. JEL Classification: D24, E2, J24

scholarly journals Dynamic Integrated Model for Assessing Fisheries: Discard Bans as an Implicit Value-Added Tax

2021 ◽  
Author(s):  
Jose Maria Da Rocha ◽  
Javier García-Cutrín ◽  
Maria-Jose Gutiérrez ◽  
Raul Prellezo ◽  
Eduardo Sanchez
Keyword(s):  
Value Added ◽  
Point Of View ◽  
Value Added Tax ◽  
Biological Variables ◽  
A Value ◽  
Long Run ◽  
The Social ◽  
Negative Effect ◽  
Short Run ◽  
The Impact

AbstractIntegrated economic models have become popular for assessing climate change. In this paper we show how these methods can be used to assess the impact of a discard ban in a fishery. We state that a discard ban can be understood as a confiscatory tax equivalent to a value-added tax. Under this framework, we show that a discard ban improves the sustainability of the fishery in the short run and increases economic welfare in the long run. In particular, we show that consumption, capital and wages show an initial decrease just after the implementation of the discard ban then recover after some periods to reach their steady-sate values, which are 16–20% higher than the initial values, depending on the valuation of the landed discards. The discard ban also improves biological variables, increasing landings by 14% and reducing discards by 29% on the initial figures. These patterns highlight the two channels through which discard bans affect a fishery: the tax channel, which shows that the confiscation of landed discards reduces the incentive to invest in the fishery; and the productivity channel, which increases the abundance of the stock. Thus, during the first few years after the implementation of a discard ban, the negative effect from the tax channel dominates the positive effect from the productivity channel, because the stock needs time to recover. Once stock abundance improves, the productivity channel dominates the tax channel and the economic variables rise above their initial levels. Our results also show that a landed discards valorisation policy is optimal from the social welfare point of view provided that incentives to increase discards are not created.

scholarly journals Energy Prices, Real Estate Sales and Industrial Output in China

Energies ◽  
2018 ◽  
Vol 11 (7) ◽  
pp. 1847 ◽  
Author(s):  
K. Chau ◽  
Gaolu Zou
Keyword(s):  
Real Estate ◽  
Value Added ◽  
Industrial Sector ◽  
Data Series ◽  
Energy Prices ◽  
Industrial Output ◽  
Energy Efficient Buildings ◽  
Long Run ◽  
Different Types ◽  
Short Run

A majority of energy is consumed to control the indoor environment for human activities and industrial production. The demand for energies for these two uses are reflected in demand for different types of real estate and the volume of industrial outputs. The purpose of this study is to examine the long-run equilibrium and short-run dynamics between real energy prices and demand for different types of real estate and industrial output in China. Energy prices are measured in the real price of fuels and power. Demand for different types of real estate is measured in their sales volume in the first hand market, that is, floor areas of new real estate sold by developers. Industrial output is measured by the net output (value added) of the industrial sector. All data series were tested for stationarity (i.e., the existence of a unit root) before testing for a co-integration relationship. We found no long-term equilibrium relationship between energy prices and the demand for real estate and industrial output as predicted by theory, probably due to increased supply of energy efficient buildings. There is also no short-run relationship between energy prices and demand for housing due to the increase in vacancy rate resulting from speculative demand for housing. However, demand for commercial properties appeared to lead energy prices. Finally, there is strong evidence suggesting that an increase in energy prices will significantly reduce industrial output but not vice versa.

Cost-Effectiveness of Paving Fabrics Used to Control Reflective Cracking

2000 ◽  
Vol 1730 (1) ◽  
pp. 139-149 ◽  
Author(s):  
William G. Buttlar ◽  
Diyar Bozkurt ◽  
Barry J. Dempsey
Keyword(s):  
Life Cycle ◽  
Cost Effectiveness ◽  
Department Of Transportation ◽  
Reflective Cracking ◽  
Crack Control ◽  
Condition Rating ◽  
System A ◽  
Rigid Pavements ◽  
The Cost ◽  
And Control

The Illinois Department of Transportation (IDOT) spends $2 million annually on reflective crack control treatments; however, the cost-effectiveness of these treatments had not been reliably determined. A recent study evaluated the cost-effectiveness of IDOT reflective crack control System A, which consists of a nonwoven polypropylene paving fabric, placed either in strips longitudinally over lane-widening joints or over the entire pavement (area treatment). The study was limited to projects constructed originally as rigid pavements and subsequently rehabilitated with one or more bituminous overlays. Performance of 52 projects across Illinois was assessed through crack mapping and from distress and serviceability data in IDOT’s condition rating survey database. Comparisons of measured reflective cracking in treated and control sections revealed that System A retarded longitudinal reflective widening crack development, but it did not significantly retard transverse reflective cracking, which agrees with earlier studies. However, both strip and area applications of these fabric treatments appeared to improve overall pavement serviceability, and they were estimated to increase rehabilitation life spans by 1.1 and 3.6 years, respectively. Reduction in life-cycle costs was estimated to be 4.4 and 6.2 percent when placed in medium and large quantities, respectively, and to be at a break-even level for small quantities. However, life-cycle benefits were found to be statistically insignificant. Limited permeability testing of field cores taken on severely distressed transverse joints suggested that waterproofing benefits could exist even after crack reflection. This was consistent with the observation that, although serviceability was generally improved with area treatment, crack reflection was not retarded relative to untreated areas.

scholarly journals When will the eel recover? A full life-cycle model

2007 ◽  
Vol 64 (7) ◽  
pp. 1491-1498 ◽  
Author(s):  
Mårten Åström ◽  
Willem Dekker
Keyword(s):  
Life Cycle ◽  
Distribution Area ◽  
European Eel ◽  
Life Cycle Model ◽  
Cycle Model ◽  
Glass Eel ◽  
Full Life Cycle ◽  
Long Run ◽  
Spawning Stock ◽  
Full Life

Abstract Åström M., and Dekker W. 2007. When will the eel recover? A full life-cycle model. – ICES Journal of Marine Science, 64: 000–000: –. The European eel population has declined over the past decades in most of its distribution area, and the stock is outside safe biological limits. The EU has taken up the challenge to design a management system that ensures the escapement of 40% of spawning-stock biomass, relative to unexploited, unpolluted circumstances in unobstructed rivers. This ultimately aims to restore the spawning stock to a level at which glass eel production is not impaired, i.e. to restore to full historical glass eel recruitment. To explore the trajectory from the current depleted state to full recruitment recovery, we developed a simple model of stock dynamics, based on a simplified stock–recruitment relationship and the conventional dynamic pool assumptions. Recruitment trajectories under different future fishery regimes are explored, for the medium (one generation time) and long time-span (until full recruitment recovery). Reducing fisheries to zero, recovery is expected within ∼80 years, whereas under an ultimately sustainable fishing regime of just 10% of the current rate of fishing mortality, recovery may take more than 200 years. Moreover, management regimes, apparently leading to slight recovery of the stock in the coming 5–15 years, might still be unsustainable in the long run.

Integrated Training Solutions: An Effective Tool to Synchronize People and Maintenance (U.S. Navy LCAC Case Study)

2012 ◽  
Author(s):  
Maurice Hartey ◽  
Thomas Bodman ◽  
Arlene Korn
Keyword(s):  
Life Cycle ◽  
Life Cycle Cost ◽  
Training Programs ◽  
Operating Time ◽  
Life Cycle Management ◽  
Cost Driver ◽  
Maintenance Costs ◽  
Knowledge And Skills ◽  
Long Run

Maintenance, especially in a Marine environment, is continuous and costly. Life Cycle Management of a Marine Gas Turbine system encompasses many costs, of which repair parts, labor and equipment downtime associated with failures and maintenance are a significant portion. In fact, people (labor) make up the largest component of overall maintenance costs. Investing in people the largest cost driver to life cycle cost has a direct return in the long run, in terms of maintenance effectiveness and efficiencies. Applying and reinforcing knowledge and skills in a maintenance environment translates to improved reliability outcomes, longer operating time, fewer parts needs, and ultimately costs savings. However, given today’s constrained fiscal environment, the value of spending money for training rather than buying more parts or applying more maintenance, may not appear obvious. Such thinking is short sighted, and ultimately leads to reduced reliability and increased maintenance in the long run. This paper will explore these areas, and recommend how training programs can be effective predictive, proactive and responsive.

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