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Dubois, Pierre
and Magnac, Thierry
(2023)
Optimal Intertemporal Curative Drug Expenses: The Case of Hepatitis C in France.
TSE Working Paper, n. 23-1402, Toulouse
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Abstract
We study intertemporal trade-offs that health authorities (HAs) face when considering the control of an epidemy using innovative curative medical treatments. We set up a dynamically controlled Susceptibles-Infected-Recovered (SIR) model for an epidemy in which patients can be asymptomatic, and we analyze in a simple model, the optimality conditions of the sequence of cure expenses decided by HAs at the onset of the drug innovation. We show that analytical conclusions are ambiguous because of their dependence on parameter values. As an application, we focus on the case-study of Hepatitis C whose treatment underwent a major up-heaval when curative drugs were introduced in 2014. We calibrate our controlled SIR model using French data and simulate optimal policies. We show that the optimal policy entails some front loading of the intertemporal budget compared to fixed annual ones. The analysis demonstrates how beneficial the intertemporal budgeting can be compared to non forward looking constant budget allocation.
| Item Type: | Monograph (Working Paper) |
|---|---|
| Language: | English |
| Date: | January 2023 |
| Place of Publication: | Toulouse |
| Uncontrolled Keywords: | pharmacy, SIR model, controlled epidemy dynamics, optimal intertemporal poli-, cies, hepatitis C |
| JEL Classification: | I12 - Health Production - Nutrition, Mortality, Morbidity, Suicide, Substance Abuse and Addiction, Disability, and Economic Behavior I18 - Government Policy; Regulation; Public Health |
| Subjects: | B- ECONOMIE ET FINANCE |
| Divisions: | TSE-R (Toulouse) |
| Institution: | Université Toulouse Capitole |
| Site: | UT1 |
| Date Deposited: | 31 Jan 2023 09:36 |
| Last Modified: | 15 Mar 2024 07:56 |
| OAI Identifier: | oai:tse-fr.eu:127775 |
| URI: | https://publications.ut-capitole.fr/id/eprint/46752 |
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- Optimal Intertemporal Curative Drug Expenses: The Case of Hepatitis C in France. (deposited 31 Jan 2023 09:36) [Currently Displayed]
