Discussion: The Impact of Pharmaceutical Price Regulation Reform in Germany

Guidance: In this article (see link to article below), the authors analyze the impact of a 2011 reform to pharmaceutical price regulation in Germany. In your discussion, I want you to analyze and explain how this reform alters (if it does) the tradeoff between static and dynamic efficiency in the pharmaceutical industry (see my pharmaceutical lecture for definitions of static and dynamic efficiency). In addition, consider and discuss (which the article does not do) the possible effects such regulation might have on R&D spending by pharmaceutical manufacturers.

Important: No outside sources other than this article needed. No works cited page needed.