Does price reveal poor-quality drugs? Evidence from 17 countries.

@article{Bate2011DoesPR,
  title={Does price reveal poor-quality drugs? Evidence from 17 countries.},
  author={Roger Bate and Ginger Zhe Jin and Aparna Mathur},
  journal={Journal of health economics},
  year={2011},
  volume={30 6},
  pages={1150-63}
}
Focusing on 8 drug types on the WHO-approved medicine list, we constructed an original dataset of 899 drug samples from 17 low- and median-income countries and tested them for visual appearance, disintegration, and analyzed their ingredients by chromatography and spectrometry. Fifteen percent of the samples fail at least one test and can be considered substandard. After controlling for local factors, we find that failing drugs are priced 13.6-18.7% lower than non-failing drugs but the signaling… CONTINUE READING
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