Advancement to Candidacy Presentation: “Global Cooperation for Drug Procurement”, George Yang, University of California, Santa Barbara

Speaker

George Yang, University of California, Santa Barbara

Biography

I am a fourth-year PhD candidate in Economics at the University of California, Santa Barbara. My research focuses on health economics and public economics. My work applies tools from mechanism design and econometrics to those areas. I previously worked at the Center for Global Development and earned my undergraduate degree from the University of Pennsylvania.

Title

“Global Cooperation for Drug Procurement”

Abstract

Research and development (R&D) is a public good. It is typically protected by patents, which preserve dynamic efficiency but generate static inefficiencies. We propose a club in which members buy out drug patents and set prices at marginal cost. The buyout cost is shared among members using Lindahl-like pricing rules. To ensure individual rationality and maintain club stability, the first-best club dissolves if full participation is not achieved. We estimate a structural model of pharmaceutical innovation, supply, and demand across OECD countries. Our results suggest that implementing the club yields substantial welfare gains. 

JEL Codes: O31, O38, I18, L65, H41, D45, F53

Event Details

George will be presenting his Advancement to Candidacy paper, “Global Cooperation for Drug Procurement”. To access the Advancement paper, you must have an active UCSB NetID and password.

PLEASE DO NOT CIRCULATE, PRELIMINARY WORK