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

2024/06/15 by Farasat A. S. Bokhari, Franco Mariuzzo, Weijie Yan · 1 voice
Economics, Econometrics and Finance · Pharmacology, Toxicology and Pharmaceutics · #Pharmaceutical Economics and Policy #Pharmaceutical industry and healthcare #Economic and Environmental Valuation

paper · doi:10.1016/j.ijindorg.2024.103082

openalex publication_date 2024/06/15 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/02

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.

Citations

• Nested Logit or Random Coefficients Logit? A Comparison of Alternative Discrete Choice Models of Product Differentiation
• Provider effects in antibiotic prescribing

Discussions

• This makes targeted taxation a promising lever to help slow antimicrobial resistance—though always with care to protect patients who truly need broad-spectrum coverage. Open access 👉 doi.org/10.1016/ [bsky, 2 points, 0 comments]

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