Macroeconomic and Fiscal Effects of Increased Efficiency in Medicine Procurement: A General Equilibrium Analysis of the Colombian Health System

Oscar Ávila-Montealegre, Sebastian Bauhoff, Jesús Botero, Laura Giles Álvarez, Santiago León-Moncada, Cristhian Larrahondo, Luis Ignacio Lozano-Espitia, Ligia Alba Melo-Becerra, José Luis Ortiz-Hoyos and Jesús Rodríguez-Ávila
Authors registered in the RePEc Author Service: Ligia Melo (lmelobec@banrep.gov.co)

Working papers from Red Investigadores de Economía

Abstract: This study analyzes the macroeconomic and fiscal effects of greater efficiency in medicines procurement in Colombia, using both static (computable) and dynamic general equilibrium models. The findings indicate that implementing an efficient drug procurement policy could reduce the total health system spending, with potential savings of up to 8.4% in the short term and up to 10.8% in the long term. These savings could be reinvested within the health system, allocated to other sectors, or used to reduce tax burden on capital, consumption, or social contributions. The latter option would increase production by up to 1.1%, investment by 1.7% and consumption by 0.8%. Potential measures to achieve such efficiency gains include promoting and purchasing generic drugs, conducting joint procurement, and implementing price regulation.

Keywords: Medications; Health expenditure; Health system; Colombia; Taxes; General equilibrium models; Pharmaceutical policy (search for similar items in EconPapers)
JEL-codes: C68 D58 E26 H21 H51 I11 I18 (search for similar items in EconPapers)
Pages: 32
Date: 2025-01
New Economics Papers: this item is included in nep-dge, nep-hea and nep-pbe
References: Add references at CitEc
Citations:

Downloads: (external link)
https://publications.iadb.org/es/efectos-macroecon ... camentos-un-analisis (application/pdf)
Our link check indicates that this URL is bad, the error code is: 403 Forbidden

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rie:riecdt:110

Access Statistics for this paper

More papers in Working papers from Red Investigadores de Economía Cra 7 # 14-78. Contact information at EDIRC.
Bibliographic data for series maintained by CAIE (caie-investiga@banrep.gov.co).