Distributional effects of `general population' prescription drug programs in Canada

Sule Alan, Thomas Crossley (), Paul Grootendorst and Michael Veall

Canadian Journal of Economics, 2005, vol. 38, issue 1, 128-148

Abstract: Canadian household prescription drug expenditures are studied using the Statistics Canada Family Expenditure Survey masterfiles for periods that include the introduction of provincial `general population' prescription drug programs. Budget shares for non-senior households are examined over time using non-parametric regression, parametric `difference-in-difference' techniques, and quantile regression methods. The evidence suggests that while program effects are muted when there are high deductibles, a non-senior prescription drug subsidy is more redistributive than an equal-cost proportional income transfer, in part because of differential private health insurance coverage by income. This is in contrast to previous evidence on Canadian senior prescription drug subsidies.

JEL-codes: I18 J42 (search for similar items in EconPapers)
Date: 2005
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Citations: View citations in EconPapers (11)

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