How retail drug markets in poor countries develop

Daniel Bennett, Wes Yin 14 August 2014

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Millions of people die each year from infectious diseases like malaria, TB, HIV, and diarrhoea, many of which have drug therapies. We need effective medicine to confront the alarming burden of infectious disease in the developing world. However, many of the drugs for sale in developing countries are of poor quality. Counterfeiters sell ineffective products that imitate the appearance of established brands, while small manufacturers make and distribute substandard versions of common generics.

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Topics:  Development Health economics Industrial organisation

Tags:  competition, pharmaceuticals, India, quality, asymmetric information, economies of scale, healthcare, adverse selection, drugs, medicine, market for lemons, chains

Are banks too large?

Lev Ratnovski, Luc Laeven, Hui Tong 31 May 2014

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Large banks have grown significantly in size and become more involved in market-based activities since the late 1990s. Figure 1 shows how the balance-sheet size of the world’s largest banks increased two- to four-fold in the ten years prior to the crisis. Figure 2 illustrates how banks shifted from traditional lending towards market-oriented activities.

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Topics:  Financial markets

Tags:  regulation, economies of scale, bank regulation, banking, Too big to fail, systemic risk, BASEL III, bank resolution, bank capital

Why large American gains from globalisation are plausible

Gary Clyde Hufbauer, Matthew Adler 24 July 2008

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The Peterson Institute calculates that the US economy was approximately $1 trillion richer in 2003 due to past globalisation – the payoff both from technological innovation and from policy liberalisation – and could gain another $500 billion annually from future policy liberalisation (Bradford, Grieco, and Hufbauer 2005). Past gains amounted to about 9% of GDP in 2003, and potential future gains constitute another 4%.

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Topics:  Global economy International trade

Tags:  globalisation, US economy, partial equilibrium, comparative advantage, monopolistic competition, economies of scale, productivity gains, safety net

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