Pharmaceutical Prices in the United States, Canada, and Europe : Why Differences Exist and Economic Consequences
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Pharmaceutical prices today are higher than they have ever been, and have been increasing greatly in the last 30 years. This research covers the recent trends in price increases and the causes behind them, along with the effects of price increases on society. The purpose of the research is to discover what factors most significantly drive these price increases. Additionally, this research studies the relationship between pharmaceutical innovation and price controls. A broad examination of the pharmaceutical industry and an analysis of two drugs, Epi-pen and Insulin, will help to illustrate the rise in pharmaceutical prices, and will show how prices have increased without innovation in either of these drugs. The research will show that the lack of price controls in the United States allows firms to charge higher prices to consumers. The research will also show, however, that innovation for new drugs is greater in America than countries that have limits on prices. In conducting the research to determine this, a mix of both quantitative analysis and qualitative analysis was used to answer these questions.