Essays in the Economics of Pharmaceuticals and Health Care

This thesis explores the economics of pharmaceuticals and healthcare through three essays, each addressing significant challenges at the intersection of public policy, innovation, and healthcare delivery. The findings show that the NHS operates under hard budget constraints, where financial deficits influence service provision even in areas theoretically protected by specific funding mechanisms. Furthermore, I find that the demand for new medical treatments has significant implications for cost containment within the English NHS. Finally, the strategic trade-offs pharmaceutical firms face when deciding when to launch new treatments suggest that incumbent firms are motivated to delay the launch of new treatments so as to not cannibalise their revenue and extending patent terms does not offset these incentives significantly.