Niklas Rudholm

Entry and the Number of firms in the Swedish Pharmaceuticals Market

This paper analyses the factors that determineentry into the Swedish pharmaceuticals market. The analysis is based onpanel data for 22 different substances covering the years 1972 to 1996. Theresults show that profit opportunities in a particular market have apositive impact on entry. In addition, there is some evidence suggestingthat the length of the patent protection period has a negative impact onentry.

Economic implications of antibiotic resistance in a global economy

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.

Market power in the expanding Nordic power market

We examine if the Nordic power market, Nord Pool, has been competitive or if electricity suppliers have had market power. Specifically, since the evolution from national markets to a multi-national and largely deregulated power market has taken place stepwise, we also examine how the degree of market power has evolved during this integration process. The Bresnahan–Lau method together with weekly data during 1996–2004 are used in the analysis, which shows that electricity suppliers have had small, but statistically significant, market power, but that the market power has been reduced as the Nord Pool area has expanded.

Side effects of generic competition

This study examined the relationship between generic drug market shares and the number of reported side effects. Yearly time-series data for the number of reported side effects and information on market shares, prices, and quantities from 1972 to 1996 were used in this study. Poisson and negative binomial regression models were used in the statistical analysis. The results show that increased generic market share increases the number of reported side effects for all estimated models. When studying the relationship at the substance level, increasing generic market shares increases the number of side effects for 7 of the 15 substances. Generic substitution laws and measures to increase generic competition may thus have unintended consequences since these results show a positive relationship between generic market shares and reported side effects.

Fixed budgets as a cost containment measure for pharmaceuticals.

In Västerbotten County, Sweden, there are two health centers which (in contrast to all other health centers in the region) bear strict responsibility over their pharmaceutical budget. This study examined whether the prices and quantities of pharmaceuticals prescribed by physicians working at these health centers differ significantly from those prescribed by physicians at health centers with open-ended budgets. Estimation results using matching methods, which allows us to compare similar patients at the different health centers, show that the introduction of fixed pharmaceutical budgets did not affect physicians’ prescription behavior, indicating that fixed budgets may not be an efficient measure to reduce costs. Another explanation is that the health centers under study already had taken measures to contain costs, making it hard to further reduce costs.

Competition and substitutability in the Swedish pharmaceuticals market

Substitution possibilities between brand name pharmaceuticals are analysed. The analysis is based on data from three different markets; the prescription drug market for beta-blocking agents, the ‘over the counter’ market for purgatives and the hospital market for two pharmaceutical treatments for gastric ulcers. The results indicate that there exist some substitution possibilities among the brand name drugs included in the study.

Optimal retail location and CO2 emissions

In this article, the p-median model is used to find the location of retail stores that minimizes CO2 emissions from consumer travel. The optimal location is then compared with the existing retail location, and the excess CO2 emissions compared with the optimal solution is calculated. The results show that by using the environmentally optimal location, CO2 emissions from consumer travel could be reduced by approximately 22%.

Multinational electricity market integration and electricity price dynamics

The paper empirically explores the electricity price dynamics in the Nordic power market, Nord Pool, during the years 1996-2006. Empirically the study reveals that the conditional mean electricity price increased when Finland joined, and remained at the higher level when Denmark also joined. Turning to the price volatility, this increased when Finland joined, but decreased when Denmark also joined. However, the price jump-intensity decreased both when Finland and Denmark joined the market. This means that a larger electricity market seems to reduce the probability of sudden price jumps. That is, the multinational electricity market integration seems to have created a market that handles external shocks to supply and demand more efficient than the separate national electricity markets previously did.

Firm migration in the Swedish wholesale trade sector

This article analyzes the determinants of firm migration in the Swedish wholesale trade sector using a unique dataset covering over 10,000 Swedish wholesale trade firms during the years 2000–2004. The results indicate that there are negative correlations between profits, firm age, and firm size and the probability of firm migration. There is a positive correlation between firm growth in the previous year and firm migration, indicating that growth opportunities that cannot be realized at the present location are an important motivation for migration.

Congestion charges in Stockholm: how have they affected retail revenues?

Did the introduction of congestion charges in Stockholm city reduce retail revenues? Data from 20 shopping malls – 8 within the toll area, and 12 outside the toll area – and from a sample of retail stores located along the main shopping streets was analysed using an intervention-control approach. Favourable outcomes, such as reduced traffic, less emissions of carbon-dioxide and perceived improvements in air quality and accessibility, do not seem to have been offset by reduced revenues for retailers located within the toll area.