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The Market Impacts of Pharmaceutical Product Patents in Developing Countries: Evidence from India

Mark Duggan, Craig Garthwaite and Aparajita Goyal

American Economic Review, 2016, vol. 106, issue 1, 99-135

Abstract: In 2005, as the result of a World Trade Organization mandate, India implemented a patent reform for pharmaceuticals that was intended to comply with the 1995 Trade-Related Aspects of Intellectual Property Rights (TRIPS). Exploiting variation in the timing of patent decisions, we estimate that a molecule receiving a patent experienced an average price increase of just 3-6 percent, with larger increases for more recently developed molecules and for those produced by just one firm when the patent system began. Our results also show little impact on quantities sold or on the number of pharmaceutical firms operating in the market. (JEL K33, L11, L13, L65, O14, O34, O38)

JEL-codes: K33 L11 L13 L65 O14 O34 O38 (search for similar items in EconPapers)
Date: 2016
Note: DOI: 10.1257/aer.20141301
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Working Paper: The Market Impacts of Pharmaceutical Product Patents in Developing Countries: Evidence from India (2014) Downloads
Working Paper: The Market Impacts Of Pharmaceutical Product Patents In Developing Countries: Evidence From India (2014) Downloads
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