A Cost-Benefit Analysis of the Medicines Patent Pool

22 Pages Posted: 2 Nov 2022

See all articles by Lucy Xiaolu Wang

Lucy Xiaolu Wang

University of Massachusetts Amherst - Department of Resource Economics; Max Planck Institute for Innovation and Competition

Date Written: October 30, 2022

Abstract

Understanding the cost and benefit of global public health institutions is important but challenging. This study provides a cost-benefit analysis of the first public health-oriented patent pooling and licensing institution, the Medicines Patent Pool (MPP), which is devoted to improving generic drug supply in low- and middle-income countries. A simple structural model of demand and supply is estimated, and counterfactuals are simulated in the absence of the MPP or with further expansions. The estimated benefits to consumers and firms far exceed the operating costs.

Keywords: cost-benefit analysis, Medicines Patent Pool, drug access, low and middle-income countries

JEL Classification: O3, K2, I1

Suggested Citation

Wang, Lucy Xiaolu, A Cost-Benefit Analysis of the Medicines Patent Pool (October 30, 2022). Available at SSRN: https://ssrn.com/abstract=4262457 or http://dx.doi.org/10.2139/ssrn.4262457

Lucy Xiaolu Wang (Contact Author)

University of Massachusetts Amherst - Department of Resource Economics ( email )

Stockbridge Hall
80 Campus Center Way
Amherst, MA 01003
United States

HOME PAGE: http://www.lucyxiaoluwang.com/

Max Planck Institute for Innovation and Competition ( email )

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Munich, Bayern 80539
Germany

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