Antibacterial resistance and the cost of affecting demand: the case of UK antibiotics

Bokhari, Farasat A. S. ORCID:, Mariuzzo, Franco ORCID: and Yan, Weijie (2024) Antibacterial resistance and the cost of affecting demand: the case of UK antibiotics. International Journal of Industrial Organization, 95. ISSN 0167-7187

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Consumption of broad-spectrum antibiotics is associated with rising antimicrobial resistance (AMR) levels. The use of broad-spectrum drugs, particularly of cephalosporins, quinolones, and co-amoxiclav contributes the most to the rise in AMR. We use aggregate sales data on antibiotics from the UK to estimate structural demand models and reveal drug substitution patterns. We then simulate alternative tax schemes to evaluate the effectiveness of shifting demand from broad- to narrow-spectrum drugs. Our estimates suggest that these policies can be highly effective in demand management and come at a relatively low cost regarding changes in consumer and producer surplus.

Item Type: Article
Additional Information: Data availability statement: The authors do not have permission to share data.
Uncontrolled Keywords: antimicrobial resistance,demand estimation,antibiotics,policy simulation,welfare change
Faculty \ School: Faculty of Social Sciences > School of Economics
UEA Research Groups: Faculty of Social Sciences > Research Centres > Centre for Competition Policy
Faculty of Social Sciences > Research Groups > Industrial Economics
Depositing User: LivePure Connector
Date Deposited: 14 Jun 2024 14:30
Last Modified: 15 Jul 2024 09:35
DOI: 10.1016/j.ijindorg.2024.103082


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