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External economies of scale, government purchasing commitment and welfare improvements in the vaccines industry

Author

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  • Pedro Garcia-del-Barrio

    (Universitat Internacional de Catalunya)

Abstract

Some industries exhibit external economies of scale. In these cases,the introduction of self-financing tax subsidy programmes canimprove social welfare. This paper advocates intervention incompetitive markets if economies of scale existand implementing the policy is inexpensive.

Suggested Citation

  • Pedro Garcia-del-Barrio, 2012. "External economies of scale, government purchasing commitment and welfare improvements in the vaccines industry," European Journal of Government and Economics, Europa Grande, vol. 1(2), pages 163-179, December.
    • Handle: RePEc:egr:ejge00:v:1:i:2:p:163-179
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    File URL: http://www.ejge.org/index.php/ejge/article/download/15/26
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    References listed on IDEAS

    as
    1. Jacques Thépot, 2003. "Pareto‐Improving Redistribution in a Monopoly," The Japanese Economic Review, Japanese Economic Association, vol. 54(2), pages 165-178, June.
    2. Masahiko Aoki, 2013. "Marshallian External Economies And Optimal Tax-Subsidy Structure," Chapters, in: Comparative Institutional Analysis, chapter 2, pages 5-17, Edward Elgar Publishing.
    3. repec:bla:econom:v:69:y:2002:i:274:p:223-27 is not listed on IDEAS
    4. John S. Chipman, 1970. "External Economies of Scale and Competitive Equilibrium," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 84(3), pages 347-385.
    5. Ethier, Wilfred J, 1982. "Decreasing Costs in International Trade and Frank Graham's Argument for Protection," Econometrica, Econometric Society, vol. 50(5), pages 1243-1268, September.
    6. Frank D. Graham, 1923. "Some Aspects of Protection Further Considered," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 37(2), pages 199-227.
    7. Osana, Hiroaki, 1977. "Optimal Tax-Subsidy System for an Economy with Marshallian Externalities," Econometrica, Econometric Society, vol. 45(2), pages 329-340, March.
    8. Stephen Broadberry & Andrew Marrison, 2002. "External economies of scale in the Lancashire cotton industry, 1900–1950[Without im]," Economic History Review, Economic History Society, vol. 55(1), pages 51-77, February.
    9. Panagariya, Arvind, 1981. "Variable Returns to Scale in Production and Patterns of Specialization," American Economic Review, American Economic Association, vol. 71(1), pages 221-230, March.
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    Cited by:

    1. Pedro Garcia-del-Barrio, 2017. "Pareto-improving income redistribution: expanding consumer access to the vaccines market," Economics of Governance, Springer, vol. 18(3), pages 275-313, August.

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    More about this item

    Keywords

    external economies of scale; social welfare; tax-subsidy; income transfer; government intervention;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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