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

B-Tier
Journal: International Journal of Industrial Organization
Year: 2024
Volume: 95
Issue: C

Authors (3)

Bokhari, Farasat A.S. (University of East Anglia) Mariuzzo, Franco (not in RePEc) Yan, Weijie (not in RePEc)

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

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.

Technical Details

RePEc Handle
repec:eee:indorg:v:95:y:2024:i:c:s0167718724000377
Journal Field
Industrial Organization
Author Count
3
Added to Database
2026-01-24