Drug Price Controls
By Arnold Kling
Some economists published a petition against drug price controls.
Drug-price controls are more difficult to remove than other price controls. Controls on oil and other products often tend to be limited or short-lived, as voters eventually object to the resulting shortages and distortions. The effects of drug price controls, however, are far more difficult to observe because they mainly affect medicines that haven’t been invented yet.
UPDATE: for a more emotional take on the issue, see Derek Lowe.
For Discussion. Is the threat of drug price controls sufficient to reduce investment in new drug discovery?