Self-interested international income redistribution and access to health care innovation

We study how income redistribution affects decisions of a health care innovator and the utility of individuals. We find that income redistribution from rich to poor can increase the quality of medical innovation and the utility of some consumers whose income is reduced through the redistribution. We...

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Bibliographic Details
Published in:European Journal of Political Economy 2006-06, Vol.22 (2), p.322-336
Main Authors: Acharyya, Rajat, Garcia-Alonso, Maria D.C.
Format: Article
Language:English
Subjects:
Health care
Innovation
International income distribution
Pharmaceuticals
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Summary:We study how income redistribution affects decisions of a health care innovator and the utility of individuals. We find that income redistribution from rich to poor can increase the quality of medical innovation and the utility of some consumers whose income is reduced through the redistribution. We therefore find a non-altruistic motive for international income transfers that would increase access to health innovations.
ISSN:0176-2680
1873-5703
DOI:10.1016/j.ejpoleco.2005.08.002