Law for the Promotion of National Industry: distortions and overspending on public procurement of medicines

The purpose of this research is to analyze the effects caused to the state and society by Law 27143 'Ley de Promoción Temporal del Desarrollo Productivo Nacional' with regard to public procurement of medicines. To this end, a database was constructed to calculate the amount of money overpa...

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Autores principales: García García, Jaime E.; Universidad del Pacífico, Manrique Vidal, Álvaro G.; Universidad del Pacífico
Formato: Artículo publishedVersion
Lenguaje:Español
Publicado: Universidad del Pacífico 2014
Materias:
Acceso en línea:http://revistas.up.edu.pe/index.php/apuntes/article/view/179
http://biblioteca.clacso.edu.ar/gsdl/cgi-bin/library.cgi?a=d&c=pe/pe-014&d=article179oai
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id I16-R122-article179oai
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institution Consejo Latinoamericano de Ciencias Sociales
institution_str I-16
repository_str R-122
collection Red de Bibliotecas Virtuales de Ciencias Sociales (CLACSO)
language Español
topic public purchases, industrial promotion policies, market distortion, social cost, monopsony, monopoly, asymmetric information, game theory
compras públicas, políticas de promoción industrial, distorsión del mercado, modelamiento de comportamiento, maximización, precios, costo social, discriminación de tercer grado, monopsonio, monopolio, asimetría de información, teoría de juegos, licitación
spellingShingle public purchases, industrial promotion policies, market distortion, social cost, monopsony, monopoly, asymmetric information, game theory
compras públicas, políticas de promoción industrial, distorsión del mercado, modelamiento de comportamiento, maximización, precios, costo social, discriminación de tercer grado, monopsonio, monopolio, asimetría de información, teoría de juegos, licitación
García García, Jaime E.; Universidad del Pacífico
Manrique Vidal, Álvaro G.; Universidad del Pacífico
Law for the Promotion of National Industry: distortions and overspending on public procurement of medicines
topic_facet public purchases, industrial promotion policies, market distortion, social cost, monopsony, monopoly, asymmetric information, game theory
compras públicas, políticas de promoción industrial, distorsión del mercado, modelamiento de comportamiento, maximización, precios, costo social, discriminación de tercer grado, monopsonio, monopolio, asimetría de información, teoría de juegos, licitación
description The purpose of this research is to analyze the effects caused to the state and society by Law 27143 'Ley de Promoción Temporal del Desarrollo Productivo Nacional' with regard to public procurement of medicines. To this end, a database was constructed to calculate the amount of money overpaid by the state due to the 20% bonus given to domestic medicine producers. This was expressed as the difference between the price paid to the domestic producer who won the contract and the price otherwise payable to an importer. These numbers show the quantum of treatments that could have been offered to patients if the cheapest product had been bought. Finally a model was built to help understand the price-setting behavior of domestic firms awarded in this way.Using this methodology, we ascertained that the state paid an excess of S/.37,57 million due to this law. With this amount of money, it would have been possible to offer 1.571.471 treatments to adults and 81.175 to children in the period 2002–2006. Finally we show that the domestic pharmaceutical laboratories use the 20% bonus as a price setting mechanism that enables them to keep charging high prices compared to the competition and still win the procurement process.
format Artículo
publishedVersion
Artículo
publishedVersion
author García García, Jaime E.; Universidad del Pacífico
Manrique Vidal, Álvaro G.; Universidad del Pacífico
author_facet García García, Jaime E.; Universidad del Pacífico
Manrique Vidal, Álvaro G.; Universidad del Pacífico
author_sort García García, Jaime E.; Universidad del Pacífico
title Law for the Promotion of National Industry: distortions and overspending on public procurement of medicines
title_short Law for the Promotion of National Industry: distortions and overspending on public procurement of medicines
title_full Law for the Promotion of National Industry: distortions and overspending on public procurement of medicines
title_fullStr Law for the Promotion of National Industry: distortions and overspending on public procurement of medicines
title_full_unstemmed Law for the Promotion of National Industry: distortions and overspending on public procurement of medicines
title_sort law for the promotion of national industry: distortions and overspending on public procurement of medicines
publisher Universidad del Pacífico
publishDate 2014
url http://revistas.up.edu.pe/index.php/apuntes/article/view/179
http://biblioteca.clacso.edu.ar/gsdl/cgi-bin/library.cgi?a=d&c=pe/pe-014&d=article179oai
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