Design and Selection of Pharmaceutical Innovation Incentive Policies: Subsidy or Inclusion in Health Insurance Plan
Xinxin ZHANG,
Chenglin SHEN,
Junran HUANG
Abstract:A critical problem plaguing regulators in promoting pharmaceutical innovation is to design and select efficient incentive policies. In this study, we develop a stylized model comprising a regulator and two representative drug producers to evaluate the effects of three incentive policies: Innovation subsides, inclusion new drugs in the health insurance plan, and the combination of the above two policies (also called hybrid policy). Our analysis shows that innovation subsidies and inclusion of new drugs in the h… Show more
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