The enforcement of stringent intellectual property rights in the pharmaceutical sector of developing countries generates considerable controversy, due to both the extensive research investment and the public policy importance of this sector. This paper explores the likely effects of enforcing...

The federal-state Medicaid program insures 43 million people for virtually all of the prescription drugs approved by the FDA. To determine the price that it will pay for a drug treatment, the government uses the average price in the private sector for that same drug. Assuming that Medicaid...

During the last several years, government spending on drugs used to treat schizophrenia and other psychotic illnesses has increased at more than 30% per year, with the $3 billion in 2001 Medicaid expenditures exceeding spending in any other therapeutic category. This growth has been primarily...