Penetration of Generic Drugs and Incentives: Effect of introducing pricing premiums for generic prescriptions

Author Name NISHIKAWA Kohei (Setsunan University) / OHASHI Hiroshi (Faculty Fellow, RIETI)
Creation Date/NO. June 2017 17-J-039
Research Project Basic Research on New Industrial Policy
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The purpose of this paper is to examine the effects of an incentive policy including general prescriptions in 2012 on the penetration of generic drugs. The notable results from our analysis are as follows: (1) The 2012 policy promoted the use of generic drugs by 7.7%; (2) The policy effects substantially differ by prefecture; and (3) Our estimates show that the 2012 policy help cut pharmaceutical expenses by 11.8 billion yen.