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Entry of new pharmacies in the deregulated Norwegian pharmaceuticals market--Consequences for costs and availability

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  • Rudholm, Niklas

Abstract

Objectives The objective of this study is to analyze the impact of the new regulation concerning entry of pharmacies into the Norwegian pharmaceuticals market in 2001 on cost and availability of pharmaceutical products.Methods In order to study costs, a translog cost function is estimated using data from the annual reports of a sample of Norwegian pharmacies before and after the deregulation of the market. Linear regression models for the number of pharmacies in each region in Norway are also estimated.Results The results show that the costs of the individual pharmacies have not decreased as a consequence of the deregulation of the Norwegian pharmaceuticals market. The deregulation of the market did, however, increase the availability to pharmacy services substantially.Conclusions Increased availability of pharmacy services can be achieved by deregulating pharmaceutical markets as in Norway, but at the expense of increased costs for the pharmacies.

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  • Rudholm, Niklas, 2008. "Entry of new pharmacies in the deregulated Norwegian pharmaceuticals market--Consequences for costs and availability," Health Policy, Elsevier, vol. 87(2), pages 258-263, August.
    • Handle: RePEc:eee:hepoli:v:87:y:2008:i:2:p:258-263
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    1. Bruno, Giuseppe & Cavola, Manuel & Diglio, Antonio & Elizalde, Javier & Piccolo, Carmela, 2022. "A locational analysis of deregulation policies in the Spanish retail pharmaceutical sector," Socio-Economic Planning Sciences, Elsevier, vol. 82(PA).
    2. Grabein, Kristin & Greß, Stefan & Klaucke, Lena & Wasem, Jürgen, 2008. "Die Aufhebung des Fremd- und Mehrbesitzverbotes im deutschen Apothekenwesen vor dem Hintergrund internationaler Erfahrungen im Vereinigten Königreich und in Norwegen," IBES Diskussionsbeiträge 167, University of Duisburg-Essen, Institute of Business and Economic Studie (IBES).
    3. Moura, Ana, 2021. "Essays in health economics," Other publications TiSEM c93abd22-fa4a-42a5-b172-d, Tilburg University, School of Economics and Management.
    4. Ana Moura & Pedro Pita Barros, 2020. "Entry and price competition in the over‐the‐counter drug market after deregulation: Evidence from Portugal," Health Economics, John Wiley & Sons, Ltd., vol. 29(8), pages 865-877, August.
    5. Gallone, Emma Luisa & Ravetto Enri, Lorenzo & Pignata, Irene & Baratta, Francesca & Brusa, Paola, 2020. "The 2017 deregulation of pharmacies in Italy: Introducing non-pharmacist ownership," Health Policy, Elsevier, vol. 124(12), pages 1281-1286.
    6. Guhl, Dennis & Stargardt, Tom & Schneider, Udo & Fischer, Katharina E., 2016. "Dispensing behaviour of pharmacies in prescription drug markets," Health Policy, Elsevier, vol. 120(2), pages 190-197.
    7. Barbarisi, Ilaria & Bruno, Giuseppe & Diglio, Antonio & Elizalde, Javier & Piccolo, Carmela, 2019. "A spatial analysis to evaluate the impact of deregulation policies in the pharmacy sector: Evidence from the case of Navarre," Health Policy, Elsevier, vol. 123(11), pages 1108-1115.
    8. Vogler, Sabine & Habimana, Katharina & Arts, Danielle, 2014. "Does deregulation in community pharmacy impact accessibility of medicines, quality of pharmacy services and costs? Evidence from nine European countries," Health Policy, Elsevier, vol. 117(3), pages 311-327.
    9. Kališ, Richard, 2024. "From symbiosis to independence: Investigating changes in the relationship between general practitioners’ presence and pharmacies’ market size in Slovakia," Health Policy, Elsevier, vol. 143(C).
    10. Andrea Cintolesi & Andrea Riganti, 2022. "Liberalizing the opening of new pharmacies and hospitalizations," Temi di discussione (Economic working papers) 1388, Bank of Italy, Economic Research and International Relations Area.
    11. Håkonsen, Helle & Sundell, Karolina Andersson & Martinsson, Johan & Hedenrud, Tove, 2016. "Consumer preferences for over-the-counter drug retailers in the reregulated Swedish pharmacy market," Health Policy, Elsevier, vol. 120(3), pages 327-333.

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