The Price Effect of Drug Price Ceilings: Intended and Unintended Consequences

2021 ◽  
Author(s):  
Jun Li ◽  
Di (Andrew) Wu
Keyword(s):  
Drug Price ◽  
National Level ◽  
Healthcare Management ◽  
Unintended Consequences ◽  
Production Costs ◽  
Economic Conditions ◽  
Price Effect ◽  
Price Inflation ◽  
Price Ceiling ◽  
Controlled Drugs

Policy makers in many developing countries use maximum price or markup policies to control pharmaceutical costs, which represent 20%–60% of their overall healthcare expenditure. We study the price effect of price ceiling policies by exploiting a major policy shift in China: the elimination of longstanding ceilings on retail drug prices. We collect weekly price and characteristics data on more than 4,500 drug stock keeping units (SKUs) from a leading pharmacy chain. By comparing the rate of discontinuous price jumps across drugs with and without price ceilings during the years before and after the policy change, we find that while price ceilings are effective in containing the prices of some drugs, they can lead to higher prices for others, particularly if the ceilings are set at the national level irrespective of local economic conditions. About 5% of nationally controlled drugs (or more than 125 drugs) had inflated prices because of price ceilings, with an average price inflation of 10%. We attribute this perverse price effect to focal point pricing and asymmetric information about production costs. Further supporting this view, we find the perverse price effect most prominent in lower-income regions where the centrally set price ceilings are arbitrarily high considering their poorer economic conditions. Moreover, drugs with highly concentrated production and less elastic demand face heightened risks of inflated prices under price ceilings. Finally, based on a sample of drugs with available price ceiling data, we find that drugs with manufacturer-specific ceilings are 100% more likely to be priced at or near their ceilings and 70% more likely to experience price drops once the ceilings are removed compared with other drugs with regular ceilings. Overall, this paper documents the unintended perverse effect of price ceilings in pharmaceutical markets and sheds lights on the ongoing debate of drug price regulation. This paper was accepted by Stefan Scholtes, healthcare management.

scholarly journals PHP32 - IMPACT OF MANUFACTURER COMPETITION ON PRESCRIPTION DRUG PRICE INFLATION IN THE UNITED STATES

2018 ◽  
Vol 21 ◽  
pp. S156
Author(s):  
I. Hernandez ◽  
C.B. Good ◽  
W.F. Gellad ◽  
N. Parekh ◽  
M. He ◽  
...  
Keyword(s):  
United States ◽  
Prescription Drug ◽  
Drug Price ◽  
The United States ◽  
Price Inflation

scholarly journals Confusion Reigns: An Analysis of Responses to U.S. Soccer Age Cut-Off Date Policy Change

2021 ◽  
Vol 3 ◽  
Author(s):  
Kristy L. Smith ◽  
Sara Scarfone ◽  
Laura Chittle ◽  
Sean Horton ◽  
Jess C. Dixon
Keyword(s):  
Social Media ◽  
Policy Change ◽  
Qualitative Content Analysis ◽  
National Level ◽  
Unintended Consequences ◽  
International Standards ◽  
Youth Soccer ◽  
Relative Age ◽  
Stakeholder Input ◽  
The U.S

Relative age effects (RAEs) have been associated with the common practice of grouping athletes by chronological age. Development and selection advantages are often awarded to those who are born closer to, but following, the cut-off date employed by sport systems. In 2015, the U.S. Soccer Federation announced that it would be changing its birth-year registration cut-off date from August 1st to January 1st. This change was introduced to align the U.S. youth soccer calendar with international standards, and simultaneously provide clearer information on player birthdates to “lessen” RAEs. The magnitude of this policy change has led to considerable controversy, with members of the soccer community taking to social media and website blogs, as well as the U.S. Youth Soccer's website, to voice their opinions and general unhappiness with this decision. Thus, the purpose of this study was to provide a summary of online reactions to the policy change, with attention to the manner in which the U.S. Soccer Federation framed (i.e., the underlying rationale for the decision) and publicly communicated its decision to change the annual cut-off date. Qualitative content analysis was used to analyze data collected from 63 social media sites (websites, n = 43; forums, n = 16; blogs, n = 4). From the 3,851 pages of text derived from these sources, a total of 404 unique passages of text were identified within 262 stakeholder posts. Four categories emerged from the data: stakeholder discussion, outcomes identified by stakeholders, recommended courses of action, and communication regarding the policy change. In general, the actions of the U.S. Soccer Federation and related outcomes were negatively perceived by stakeholders at various levels of the sport. Resistance to the change may have been reduced through enhanced communication from the national level and opportunities for stakeholder input. While one objective of this policy change was to combat RAEs, previous research suggests this organizational change will only shift which group of athletes experience relative age (dis)advantages. There appears to be a disconnect between the academic literature and sport policy with respect to solutions for RAEs, which can lead to unintended consequences for various sport stakeholders.

scholarly journals A High-Resolution Wind Farms Suitability Mapping Using GIS and Fuzzy AHP Approach: A National-Level Case Study in Sudan

2021 ◽  
Vol 14 (1) ◽  
pp. 358
Author(s):  
Amr S. Zalhaf ◽  
Bahaa Elboshy ◽  
Kotb M. Kotb ◽  
Yang Han ◽  
Abdulrazak H. Almaliki ◽  
...  
Keyword(s):  
High Resolution ◽  
Wind Energy ◽  
Power Plants ◽  
Fuzzy Ahp ◽  
National Level ◽  
Wind Farms ◽  
Production Costs ◽  
Lightning Strike ◽  
Main Challenge ◽  
Suitability Map

Wind energy is one of the most attractive sustainable energy resources since it has low operation, maintenance, and production costs and a relatively low impact on the environment. Identifying the optimal sites for installing wind power plants (WPPs) is considered an important challenge of wind energy development which requires careful and combined analyses of numerous criteria. This study introduces a high-resolution wind farms suitability mapping based on Fuzzy Analytical Hierarchy Process (FAHP) and Geographic Information System (GIS) approaches considering technical, environmental, social, and spatial aspects, representing eight different criteria. First, a multi-criteria decision-making analysis based on the FAHP method is employed to assign appropriate weights for the addressed criteria with respect to their relative importance. Since the traditional AHP method, which was found employed in the majority of the relative case-studies, is not efficient in dealing with uncertainty when experts use a basic scale (0 to 1) for their assessments, the FAHP provides more flexible scales through the utilized fuzzy membership functions and the natural linguistic variables. Consequently, this helps to facilitate the assessments made by experts and increases the precision of the obtained results (weights). Next, the high-resolution GIS is used to carry out a spatial analysis and integrate various factors/criteria throughout the proposed index to produce the final suitability map and identify the unsuitable areas. The presented study emphasizes investigating the lightning strike flash rate due to its significant influences on the wind turbine’s safety and operation, yet this crucial factor has been seldomly investigated in previous studies. The obtained findings revealed that the wind speed, the land slope, and the elevation had the highest weighted criteria with 33.1%, 24.8%, and 12.2%, respectively. Besides, the final-developed suitability map revealed that 23.22% and 8.31% of the Sudanese territory are of high and very high suitability, respectively, for wind farms installation which are considered sufficient to cover the electricity needs. The difficulty of acquiring real data and resources for the addressed location was the main challenge of the presented work. The work outlook addresses the suitability mapping of hybrid photovoltaic-wind turbine energy systems, which will require addressing new and significant criteria in the applied methodology.

scholarly journals Adrift in Turbulent Seas: The Political and Ideological Struggles of Ivan Kuz'mich Polozkov

1993 ◽  
pp. 40
Author(s):  
Jonathan Harris
Keyword(s):  
Soviet Union ◽  
Communist Party ◽  
Unintended Consequences ◽  
Economic Conditions ◽  
The Political ◽  
Political Organizations ◽  
Social Democratic ◽  
Party Leaders ◽  
The Soviet Union ◽  
Soviet Russia

In the winter of 1989-90 the unintended consequences of Mikhail S. Gorbachev's program of political and economic refonn had become obvious to all but his most optimistic spokesmen. The General Secretary's attempt to create a new ideology of perestroika by grafting "bourgeois" and "social democratic" concepts onto the conventional ideology of the Communist Party of the Soviet Union (CPSU) had divided the party, created immense ideological confusion, and led to the formation of non-Communist and anti-Communist political organizations. The attempt to shift authority from party officials to elected soviets on the union and republican levels had led to the emergence of separatist and nationalist movements in many of the USSR's republics, including the RSFSR. The decentralization of the state's administration of the economy and the encouragement of both private and cooperative economic activity had failed to reverse the deterioration of economic conditions. As anxiety swept through the CPSU, orthodox party leaders called for the establishment of an autonomous Communist Party for the RSFSR to counter Gorbachev's policies and to "save Soviet Russia" from destruction.

scholarly journals ORGANIZATIONAL AND ECONOMIC CONDITIONS FOR EFFECTIVE MANAGEMENT OF LOGISTICS NETWORK

2021 ◽  
Author(s):  
Volodymyr Kolodiychyk ◽  
Zoriana Krypka
Keyword(s):  
Capital Investment ◽  
Raw Materials ◽  
Supply And Demand ◽  
Service Level ◽  
Production Costs ◽  
Transport Infrastructure ◽  
Economic Conditions ◽  
Effective Management ◽  
Organizational Conditions ◽  
Goods And Services

The article is devoted to study and development of a formalized model of organizational and economic conditions to ensure effective management of logistics functions. The author determined that logistics functions are realized through the prism of logistics operations, which are divided into external and internal. It is noted that internal logistics operations are carried out under the influence of internal organizational and economic conditions (efficiency of customs in documentation, trade and transport infrastructure, ease of organization of international shipments, competence and quality of logistics services, the ability to track goods, the frequency with which goods arrive at recipients). scheduled or expected delivery time). The application of the logistics approach involves the creation of appropriate organizational conditions. The concept of logistics is a system of approaches to streamlining economic activity by optimizing flow processes. It is defined by managers as an effective motivational approach to management in order to reduce production costs. This concept becomes the basis of the company's economic strategy: logistics is used as a tool of competition and is seen as management logic for the implementation of the plan, distribution and control of financial and human resources. This approach ensures close coordination of logistics and production strategy. Effective management of logistics functions includes the flow of goods and services. It covers an ordered sequence of steps from the procurement of raw materials to the finished product, so that it provides value to the customer. Logistics management allows you to establish strong communications and supplier relationships, helping to avoid shipment delays and minimize logistical errors. Efficient logistics provides the best bargaining power to get the best prices and goods in the shortest possible time. During the production processes and execution of orders, logistics managers need to ensure the efficiency of material flow. Optimizing the flow of goods allows you to reduce the delay of goods in the warehouse, minimize transportation costs and ensure the preservation of stocks. By balancing capital investment, maintaining the required level of service and taking into account the variability of supply and demand, companies can significantly improve inventory turnover, service level and significantly reduce costs.

Leadership questions will distract Canada's opposition

2016 ◽  
Keyword(s):  
Climate Policy ◽  
Free Trade ◽  
Policy Making ◽  
Prime Minister ◽  
National Level ◽  
International Negotiations ◽  
Economic Conditions ◽  
Liberal Party ◽  
Content Type ◽  
Election Victory

Significance Canada's main opposition parties -- the Conservatives and the NDP -- are entering a period of reconstruction and reinvention in the wake of October's election victory by Prime Minister Justin Trudeau's Liberal Party, with implications for the government's political room for manoeuvre. Impacts Federal-provincial gridlock and economic concerns from the oil downturn will hinder Canadian climate policy-making. Should poor economic conditions persist despite the government's stimulus programme, the Conservatives could strengthen as a result. National-level scepticism of free trade in many countries will sap momentum in international negotiations, such as for TTIP.

scholarly journals The Responsiveness of U.S. Rice Acreage to Price and Production Costs

1995 ◽  
Vol 27 (2) ◽  
pp. 386-399 ◽  
Author(s):  
Michael E. Salassi
Keyword(s):  
Production Cost ◽  
National Level ◽  
Ordinary Least Squares ◽  
Seemingly Unrelated Regression ◽  
Production Costs ◽  
Market Prices ◽  
Long Run ◽  
Unrelated Regression ◽  
Short Run ◽  
Average Annual Change

AbstractOrdinary least squares and seemingly unrelated regression procedures were used to analyze the impacts of changes in rice prices and production costs on U.S. rice planted acreage. National and regional response models were estimated over the 1970-92 period. Supply-inducing prices of rice were estimated as a function of effective rice support prices and seasonal average market prices. Expected production costs per acre were estimated using lagged actual total variable cash production expenses per acre adjusted by the previous 3-year average annual change in variable expenses. Estimated short-run price and production cost elasticities were found to be inelastic at the national level. However, the magnitude of the production cost elasticities were found to be greater than the price elasticities. Estimated long-run elasticities at the U.S. level were inelastic for changes in price but elastic for changes in production costs. Although acreage response varied across regions, similar relationships were found between price and production cost elasticities.

scholarly journals Spatial Variability of Health Inequalities of Older People in China and Related Health Factors

2020 ◽  
Vol 17 (5) ◽  
pp. 1739 ◽  
Author(s):  
Mengqi Yang ◽  
Mark W. Rosenberg ◽  
Jie Li
Keyword(s):  
Spatial Distribution ◽  
Older People ◽  
Health Inequalities ◽  
Population Aging ◽  
Economic Status ◽  
Descriptive Analysis ◽  
National Level ◽  
Unintended Consequences ◽  
Child Policy ◽  
The One

China is facing serious population aging issues because of many unintended consequences of the economic reforms that began in the 1980s and with social policies such as the “one child” policy. Understanding the spatial distribution of the health status of older people has attracted more and more attention in many countries, including China. By employing descriptive analysis, this study uses data from the Chinese Population Censusand Statistical Year Bookto explore the health inequalities of older people at the national level. Based on the Getis-Ord Gi*, this study finds that the uneven spatial distribution of socio-economic status results in health inequalities for older people at the national level. The geographic distribution of life expectancy was correlated with a number of important demographic, socio-economic, and environmental variables. For further research, investigations should be conducted among individuals at micro-geographic scales.

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