Economic implications of antibiotic resistance in a global economy

J Health Econ. 2002 Nov;21(6):1071-83. doi: 10.1016/s0167-6296(02)00053-x.

Abstract

This paper concerns the economic implications of antibiotic resistance in a global economy. The global economy consists of several countries, where antibiotic consumption creates a stock of bacteria which is resistant to antibiotics. This stock affects the welfare in all countries because of the risk that resistant bacterial strains may be transmitted. The main purpose of the paper is to compare the socially optimal resource allocation with the allocation brought forward by the decentralized market economy. In addition, a dynamic Pigouvian tax designed to implement the globally optimal resource allocation is presented.

Publication types

  • Research Support, Non-U.S. Gov't

MeSH terms

  • Anti-Bacterial Agents / economics*
  • Anti-Bacterial Agents / pharmacology
  • Anti-Bacterial Agents / supply & distribution*
  • Bacterial Infections / drug therapy*
  • Bacterial Infections / economics*
  • Bacterial Infections / epidemiology
  • Decision Making
  • Drug Resistance*
  • Drug Utilization
  • Global Health*
  • Health Care Rationing*
  • Health Care Sector / statistics & numerical data*
  • Health Services Research
  • Health Status Indicators
  • Humans
  • Internationality
  • Models, Econometric
  • Politics
  • Taxes

Substances

  • Anti-Bacterial Agents