Estimates of the demand for ethical pharmaceutical drugs across countries and time

Abstract
The aggregate demand for ethical pharmaceutical drugs using country-level data for seven countries pooled across an eight-year period is estimated. The regression analysis reveals that the net price paid by consumers has a negative effect on the average number of prescriptions per capita while income has a positive effect. Moreover, the parameter estimates suggest thst the demand is relatively elastic in most countries, and that the income elasticity is greater than one.

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