Antibacterial resistance and the cost of affecting demand: the case of UK antibiotics

Farasat A. S. Bokhari, Franco Mariuzzo, Weijie Yan

Research output: Contribution to journalArticlepeer-review

Abstract

Consumption of broad-spectrum antibiotics is associated with rising antimicrobial resistance (AMR) levels. The use of broad-spectrum drugs, particularly of cephalosporins, quinolones, and co-amoxiclav contributes the most to the rise in AMR. We use aggregate sales data on antibiotics from the UK to estimate structural demand models and reveal drug substitution patterns. We then simulate alternative tax schemes to evaluate the effectiveness of shifting demand from broad- to narrow-spectrum drugs. Our estimates suggest that these policies can be highly effective in demand management and come at a relatively low cost regarding changes in consumer and producer surplus.
Original languageEnglish
Article number103082
JournalInternational Journal of Industrial Organization
Volume95
Early online date14 Jun 2024
DOIs
Publication statusPublished - Jul 2024

Keywords

  • antimicrobial resistance
  • demand estimation
  • antibiotics
  • policy simulation
  • welfare change

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