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Paper Information

Journal:   TAHGHIGHAT-E-EGHTESADI   SPRING 2009 , Volume 44 , Number 86; Page(s) 131 To 162.
 
Paper: 

ALLOCATION OF PHARMA SUBSIDIES WITH RESPECT TO EFFICIENCY AND EQUALITY

 
 
Author(s):  EBADI J., GHAVAM M.H.
 
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Abstract: 

In economic theory, we are always faced with the the tradeoff between equity and efficiency. in this article, we try to analyze this relation according to the changes in the pharmaceutical system of Iran between 1376 and 1385. In this approach, changes in the process of allocating subsidies to medicine in healthcare sector in iran between 1976 and 1985 have been studied, according to changes in efficiencies in pharmaceutical industry and distributional justice (distributional equality) in health care system. Concerning the distributional justice (distributional equality) , the data for the medicine expenditure of the households has been used and the growth of the share of this expenditures has been calculated between 1376 and 1385. Concerning the efficiency issue in the pharmaceutical industry, Herfindal Index has been caculated according to share of of pharmaceutical firm's sale in the market and it is found that total production and sale of the firms has increased between 1376 and 1385. This evidence shows that the degree of competition has increased which would lead to more efficiency in the pharmaceutical industry. As conclusion we found that although efficiency has increased in the pharmaceutical industry, the distributional justice (equity) has not deterirated in these years.

 
Keyword(s): SUBSIDY, MEDICINE, DISTRIBUTIONAL JUSTICE, DISTRIBUTIONAL EQUALITY, EFFICIENCY
 
References: 
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