A Cost-Benefit Analysis of the Medicines Patent Pool
22 Pages Posted: 2 Nov 2022
Date Written: October 30, 2022
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: Suggested Citation