Journal of Economic Perspectives
ISSN 0895-3309 (Print) | ISSN 1944-7965 (Online)
Lessons for the United States from Pharmaceutical Regulation Abroad
Journal of Economic Perspectives
vol. 39,
no. 2, Spring 2025
(pp. 53–78)
(Complimentary)
Abstract
Pharmaceutical markets are characterized by barriers to entry and information problems. Many countries intervene in the pricing and reimbursement of drugs to a greater extent than the US government to date. Continued pressure from politicians and recent legislation are likely to change the market for pharmaceuticals in the United States. This article discusses the approaches adopted in other developed countries and the implications of their use in the United States, which due to its size, has far greater influence over the rate and direction of innovation. Alternative policy choices and the challenges of their implementation are also reviewed.Citation
Kyle, Margaret K. 2025. "Lessons for the United States from Pharmaceutical Regulation Abroad." Journal of Economic Perspectives 39 (2): 53–78. DOI: 10.1257/jep.20241418Additional Materials
JEL Classification
- D72 Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
- D83 Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
- L13 Oligopoly and Other Imperfect Markets
- L65 Chemicals; Plastics; Rubber; Drugs; Biotechnology
- O31 Innovation and Invention: Processes and Incentives
- O34 Intellectual Property and Intellectual Capital
- O38 Technological Change: Government Policy