The Determinants of pricing in pharmaceuticals: are U.S. prices really higher than those of Canada?

This paper studies price determination in pharmaceutical markets using data for 25 countries, six years and a comprehensive list of products from the MIDAS IMS database. We show that market power and the quality of the product has a significantly positive impact of prices. The nationality of the producer appears to have a small and often insignificant impact on prices, which suggests that countries which regulates prices have relatively little power to do it in a way that advances narrow national interest. We produce a theoretical explanation for this phenomenon based on the fact that low negotiated prices in a country would have a knock-on effect in other markets, and is thus strongly resisted by producers. Another key finding is that the U.S. has prices that are not significantly higher than those of countries with similar income levels. This, together with the former observation on the effect of the nationality of producers casts doubt on the ability of countries to purs

La pera Abate Fetel: Importància, característiques i solucions tècniques al problema del quallat

El conreu del perer a Europa es caracteritza pel fet que els principals països productors aglutinen la major part de la producció d’una varietat, per exemple, el 90% de Blanquilla es produeix a Espanya, el 50% de Llimonera a França, el 100% de Rocha a Portugal i el 99% d’Abate Fetel a Itàlia. Aquesta preponderància varietal per països solament presenta una excepció; es tracta de Conference. Aquesta varietat era conreada fonamentalment a Holanda i Bèlgica, però actualment el 29% es produeix a Espanya, seguida de Bèlgica amb un 24% i Holanda i Itàlia amb un 20% cadascun. En el cas d’Espanya, Conference es va començar a introduir a finals dels anys 70, i en menys de 30 anys s’ha convertit en el major productor de pera Conference. Aquesta situació guarda un cert paral·lelisme amb la conjuntura actual d’Abate Fetel. Itàlia és el principal productor, els preus de liquidació són bastant favorables i és una varietat poc coneguda. En el cas del perer, és important remarcar la manca de noves varietats, en part degut als pocs programes de millora, la qual cosa fa que hi hagi poques alternatives per omplir el període de collita, això fa que Abate Fetel pugui ser una opció interessant també per la seva època de recol·lecció. Actualment les plantacions d’Abate Fetel a casa nostra, tret d’algunes experiències amb èxit, en general presenten dos problemes agronòmics claus. Per un costat, una entrada en producció lenta i per l’altre, baix rendiment productiu, ambdós problemes deguts a una falta de quallat dels fruits. A més, els arbres són vigorosos i molt sensibles a clorosi fèrrica. Tots aquestos elements fan que Abate Fetel sigui per una part problemàtica des del punt de vista agronòmic, però al mateix temps molt interessant des de una vessant econòmica pels elevats preus de liquidació, i més encara en l’espècie perer per la que pràcticament no hi ha innovació varietal. Des de fa 4 anys a les Estacions Experimentals de l’IRTA a Lleida i Mas Badia s’han dut a terme una sèrie de experiments per abordar els problemes d’entrada en producció lenta i rendiments productius baixos, estudiant l’efecte de l’aplicació de fitohormones i del tipus d’esporga. L’objectiu general és posar a punt les tècniques de cultiu per tal de que Abate Fetel sigui una varietat alternativa a les nostres zones de producció.

Economic impact of alternative policy measures implemented on the energy activities of the Catalan production system: an input-output analysis

The aim of the paper is to analyse the economic impact of alternative policies implemented on the energy activities of the Catalan production system. Specifically, we analyse the effects of a tax on intermediate energy uses, a reduction in the final production of energy, and a reduction in intermediate energy uses. The methodology involves two versions of the input-output price model: a competitive price formulation and a mark-up price formulation. The input-output price framework will make it possible to evaluate how the alternative measures modify production prices, consumption prices, private welfare, and intermediate energy uses. The empirical application is for the Catalan economy and uses economic data for the year 2001.

Trials, tricks and transparency: how disclosure rules affect clinical knowledge

Scandals of selective reporting of clinical trial results by pharmaceutical firms have underlined the need for more transparency in clinical trials. We provide a theoretical framework which reproduces incentives for selective reporting and yields three key implications concerning regulation. First, a compulsory clinical trial registry complemented through a voluntary clinical trial results database can implement full transparency (the existence of all trials as well as their results is known). Second, full transparency comes at a price. It has a deterrence effect on the incentives to conduct clinical trials, as it reduces the firms'gains from trials. Third, in principle, a voluntary clinical trial results database without a compulsory registry is a superior regulatory tool; but we provide some qualified support for additional compulsory registries when medical decision-makers cannot anticipate correctly the drug companies' decisions whether to conduct trials. Keywords: pharmaceutical firms, strategic information transmission, clinical trials, registries, results databases, scientific knowledge JEL classification: D72, I18, L15

"La paradisíaca estabilidad de la anteguerra". Elaboración de un índice de precios de consumo de España, 1830-1936.

Este artículo expone los aspectos básicos de la elaboración un nuevo, y auténtico, Índice de Precios de Consumo de España para el período 1830-1936. Los distintos apartados en que está organizado se dedican a definir el campo de observación y el ámbito analizados, las fuentes empleadas y la metodología utilizada, así como las similitudes y diferencias con otros índices actualmente disponibles. Contiene, asimismo, un contiene un primer y breve análisis de los resultados. La característica más sobresaliente desde la perspectiva de las tendencias de largo plazo del nuevo IPC es una gran estabilidad, quebrada de forma importante, tan sólo, durante los años 1914-1920 bajo la influencia de la Primera Guerra Mundial. La tasa de crecimiento para el conjunto del período no alcanzó siquiera el uno por cien anual, pese al cambio de nivel registrado en aquel breve brote inflacionista.

Market effects of foreign exchange coordinated intervention

In this article we develop a theoretical microstructure model of coordinated central bank intervention based on asymmetric information. We study the economic implications of coordination on some measures of market quality and show that the model predicts higher volatility and more significant exchange rate changes when central banks coordinate compared to when they intervene unilaterally. Both these predictions are in line with empirical evidence. Keywords: coordinated foreign exchange intervention, market microstructure. JEL Classification: D82, E58, F31, G14

All-pay auction equilibria in contests

We analyze (non-deterministic) contests with anonymous contest success functions. There is no restriction on the number of contestants or on their valuations for the prize. We provide intuitive and easily verifiable conditions for the existence of an equilibrium with properties similar to the one of the (deterministic) all-pay auction. Since these conditions are fulfilled for a wide array of situations, the predictions of this equilibrium are very robust to the specific details of the contest. An application of this result contributes to fill a gap in the analysis of the popular Tullock rent- seeking game because it characterizes properties of an equilibrium for increasing returns to scale larger than two, for any number of contestants and in contests with or without a common value. Keywords: (non-) deterministic contest, all-pay auction, contest success functions. JEL Classification Numbers: C72 (Noncooperative Games), D72 (Economic Models of Political Processes: Rent-Seeking, Elections), D44 (Auctions).

Un diàleg de sords: intentant donar sentit al debat sobre la publicació electrònica

Aquest article se centra en les implicacions de la difusió electrònica per al sistema de publicació de revistes basat en la revisió per parells [peer-reviewed]. Per donar sentit a un assumpte tan complex, és de molt ajut mirar-s'ho des de la perspectiva dels orígens del sistema i de les seves tres funcions nuclears: el rànquing en la recerca, facilitar la comunicació interactiva entre els estudiosos i crear un arxiu global del coneixement científic. Cadascuna d’aquestes funcions principals té requeriments diferents que, en certa mesura, se sobreposen però que també entren, d'alguna manera, en conflicte. Internet obre la possibilitat de desenvolupar una varietat de models distints de comunicació científica modulant la intensitat de cadascun d'aquests tres rols que les revistes en paper han desenvolupat i, possiblement, d'altres funcions que no eren ni tan sols imaginables abans del desenvolupament de les xarxes electròniques d'abast planetari. Les implicacions de la distribució electrònica per a la propietat i accés a la literatura científica són profundes i tendeixen a agreujar la ja seriosa crisi dels preus de les revistes que està frenant l'accés a la informació científica. La comunitat d'estudiosos, que és autora del material que aquestes publicacions contenen i, al mateix temps, n'és el principal consumidor, està en possessió de la clau per a solucionar aquesta crisi tot permetent a Internet ser un vehicle que faciliti la difusió d’una recerca finançada des del sector públic en comptes de crear una situació de propietat privada d'aquesta recerca.

Foundations for contest success functions

In the literature the outcome of contests is either interpreted as win probabilities or as shares of the prize. With this in mind, we examine two approaches to contest success functions. In the first we analyze the implications of contestants' incomplete information concerning the "type" of the contest administrator. While in the case of two contestants this approach can rationalize prominent contest success functions, we show that it runs into difficulties when there are more agents. Our second approach interprets contest success functions as sharing rules and establishes a connection to bargaining and claims problems which is independent of the number of contestants. Both approaches provide foundations for popular contest success functions and guidelines for the definition of new ones. Keywords: Endogenous Contests, Contest Success Function. JEL Classification: C72 (Noncooperative Games), D72 (Economic Models of Political Processes: Rent-Seeking, Elections), D74 (Conflict; Conflict Resolution; Alliances).

Privatization and competition in the delivery of local services: An empirical examination of the dual market hypothesis

This paper empirically analyses the hypothesis of the existence of a dual market for contracts in local services. Large firms that operate on a national basis control the contracts for delivery in the most populated and/or urban municipalities, whereas small firms that operate at a local level have the contracts in the least populated and/or rural municipalities. The dual market implies the high concentration and dominance of major firms in large municipalities, and local monopolies in the smaller ones. This market structure is harmful to competition for the market as the effective number of competitors is low across all municipalities. Thus, it damages the likelihood of obtaining cost savings from privatization.

Innovation, R&D spillovers and productivity: the role of knowledge-intensive services

This paper analyses the performance of companies’ R&D and innovation and the effects of intra- and inter-industry R&D spillover on firms’ productivity in Catalonia. The paper deals simultaneously with the performance of manufacturing and service firms, with the aim of highlighting the growing role of knowledge-intensive services in promoting innovation and productivity gains. We find that intra-industry R&D spillovers have an important effect on the productivity level of manufacturing firms, and the inter-industrial R&D spillovers related to computer and software services also play an important role, especially in high-tech manufacturing industries. The main conclusion is that the traditional classification of manufactured goods and services no longer makes sense in the ‘knowledge economy’ and in Catalonia the regional policy makers will have to design policies that favour inter-industrial R&D flows, especially from high-tech services.

Comparison of recent toll road concession transactions in the United States and France

Recent concessions in France and in the US have resulted in a dramatic difference in the valuation placed on the toll roads; the price paid by the investors in France was twelve times current cash flow whereas investors paid sixty times current cash flow for the U.S. toll roads. In this paper we explore two questions: What accounts for the difference in these multiples, and what are the implications with respect to the public interest. Our analysis illustrates how structural and procedural decisions made by the public owner affect the concession price. Further, the terms of the concession have direct consequences that are enjoyed or borne by the various stakeholders of the toll road.

Evaluating the impact of public subsidies on a firm's performance: A quasi-experimental approach

Many regional governments in developed countries design programs to improve the competitiveness of local firms. In this paper, we evaluate the effectiveness of public programs whose aim is to enhance the performance of firms located in Catalonia (Spain). We compare the performance of publicly subsidised companies (treated) with that of similar, but unsubsidised companies (non-treated). We use the Propensity Score Matching (PSM) methodology to construct a control group which, with respect to its observable characteristics, is as similar as possible to the treated group, and that allows us to identify firms which retain the same propensity to receive public subsidies. Once a valid comparison group has been established, we compare the respective performance of each firm. As a result, we find that recipient firms, on average, change their business practices, improve their performance, and increase their value added as a direct result of public subsidy programs.

An empirical analysis of wealth taxation: equity Vs.tax compliance

Capital taxation is currently under debate, basically due to problems of administrative control and proper assessment of the levied assets. We analyze both problems focusing on a capital tax, the annual wealth tax (WT), which is only applied in five OECD countries, being Spain one of them. We concentrate our analysis on top 1% adult population, which permits us to describe the evolution of wealth concentration in Spain along 1983-2001. On average top 1% holds about 18% of total wealth, which rises to 19% when tax incompliance and under-assessment is corrected for housing, the main asset. The evolution suggests wealth concentration has risen. Regarding WT, we analyze whether it helps to reduce wealth inequality or, on the contrary, it reinforces vertical inequity (due to especial concessions) and horizontal inequity (due to the de iure and to de facto different treatment of assets). We analyze in detail housing and equity shares. By means of a time series analysis, we relate the reported values with reasonable price indicators and proxies of the propensity to save. We infer net tax compliance is extremely low, which includes both what we commonly understand by (gross) tax compliance and the degree of under-assessment due to fiscal legislation (for housing). That is especially true for housing, whose level of net tax compliance is well below 50%. Hence, we corroborate the difficulties in taxing capital, and so cast doubts on the current role of the WT in Spain in reducing wealth inequality.

Lowering blood alcohol content levels to save lives: The european experience

Road safety has become an increasing concern in developed countries due to the significant amount of mortal victims and the economic losses derived. Only in 2005 these losses rose to 200.000 million euros, a significant amount - approximately the 2% of its GDP- that easily justifies any public intervention. One tool used by governments to face this challenge is the enactment of stricter policies and regulations. Since drunk driving is one of the most important concerns of public authorities on this field, several European countries decided to lower their illegal Blood Alcohol Content levels to 0.5 mg/ml during the last decade. This study evaluates for the first time the effectiveness of this transition using European panel-based data (CARE) for the period 1991-2003 using the Differences-in-Differences method in a fixed effects estimation that allows for any pattern of correlation (Cluster-Robust). My results show the existence of positive impacts on certain groups of road users and for the whole population when the policy is accompanied by some enforcement interventions. Moreover, a time lag of more than two years is found in that effectiveness. Finally, I also assert the importance of controlling for serial correlation in the evaluation of this kind of policies.