Supply side

Other factors that affect either production cost or the consumption of fertilisers tend to be periodic and short-Hved. On the consumption side, weather conditions, prices of fertilisers, and the pohtical stabiUty of a region influence demand. The supply side is influenced by raw material availabihty, rehabihty of infrastmcture, on-stream efficiency, age of plants, and the constmction or modernisation of existing plants. 

Fig. 6. Supply-side effects of U.S. curbside collection programs.

Figure 6.36 Use of induclor on the supply side of a static drive to absorb the trapped energy...

Such a relay is connected on the supply side as shown in Figure 12.23(a). The arrangement is such that unless the relay closes, the motor switching circuit will not energize and ihe motor will not start. The contact closes only when the supply voltage is normal and the phase sequence positive. Even for undervoltage conditions, ihe torque developed by the relay may not be adequate to close the circuit. Such relays are. therefore, effective against... 

On the supply side of the interrupter, an equivalent busbar, inductance and lumped capacitance with a provision to connect p.f. correction capacitors, if required, to represent a replica of the actual installation. 

The choice of a suitable temperature or pressure control valve for steam application will depend on the supply side pressure, the downstream pressure, and the flow rate of steam to be passed. In the case of temperature control valves the first of these is usually known and the third can be calculated, but the appropriate pressure drop through the valve is often to be decided. Sometimes the maker s rating of a heater will specify that it transfers heat at a certain rate when supplied with steam at a certain pressure. This pressure is then the pressure downstream of the control valve, and the valve may be selected on this basis. 

In any case, whether emissions are wet or dry, the presence of soot in the flue gas effectively means lost Btus. Where fuel treatments are employed, their function is to limit the supply side of flue gas emissions by improving the combustion process. 

The second series of contributions focus on the analysis of the application and effectiveness of the main instruments public financing agencies use to regulate pharmaceutical expenditure, on both the demand side and the supply side. 

In the following section of this chapter we analyse the various types of market structure that occur in the case of pharmaceuticals, and we review the different factors that can limit the functioning of price competition in this market on both the supply side and the demand side. Finally, we analyse possible forms of intervention, in particular mechanisms to encourage price competition in pharmaceutical markets, and discuss the extent to which they might improve efficiency and social welfare. 

Table 5.1 Factors affecting price competition on the supply side and the demand side...

Table 5.1 sets out the factors that affect price competition on the demand side and the supply side that we have analysed above. 

In short, the imperfections of the pharmaceutical market cause (a) less price sensitivity on the demand side, (b) a certain amount of market power on the supply side, and (c) demand curves that do not reflect the true social benefit. Demand for pharmaceuticals is greater and less price-elastic than it should be. The reason for this is that consumers have little price sensitivity, especially under insurance coverage. 

On the supply side, patents allow the innovating company considerable discretion in pricing their new products. However, new products may be complements or substitutes of those of rival companies. In reality, pharmaceutical firms operate in oligopolistic markets characterized by a limited number of competitors (especially in submarkets such as that of cardiovascular products, for example), differentiated products and competitive innovation strategies. 

To sum up, the factors that enable the supply side to fix prices above the marginal cost are (a) the imperfect agency relationship between the doctor (the agent) and the insurer (the principal) the prescriber may prefer the brand product, about which he or she has acquired knowledge and experience during the patent period (risk aversion), (b) the patient, and sometimes also the doctor, may have imperfect information on the quality of cheaper alternatives, and (c) the lack of incentives to change prescription habits (moral hazard). 

RP has been introduced in countries where the monopsony power is considerable yet not by any means the only instrument used to influence the pharmaceutical market. In most countries, RP has been accompanied by a wide range of reforms affecting both the demand side and the supply side. Given this situation, it is very difficult to attribute the changes observed in pharmaceutical expenditure and prices solely to the strategy of RP. Studies that compare expenditure, consumption and prices before and after the introduction of RP, which constitute most of the empirical literature on this mechanism, do not allow us to separate the influence of RP from that of other economic and social factors on the behaviour of the dependent variable.6... 

The philosophy in which Table 9.1 is inspired requires some elucidation given the role of doctors as their patients agents, they could be placed on either the demand side and the supply side. Here we have opted for the latter approach, in view of their function as prescribers, who prefigure the available supply and simultaneously help towards defining the demand. The reference pricing system figures twice, insofar as it seeks to influence both demand and supply at the same time. As far as demand is concerned, it is designed to break the consumer/decision-maker/payer dissociation that characterizes the... 

On the supply side Coercive Limits to spending on advertising Penalization of malpractice... 

We can divide the package of measures regulating the Spanish pharmaceutical market up to 1997 into those that directly affect the supply side and those (such as the medicamentazo) that fall on the demand for drag consumption. 

One of the most important factors on the supply side has been the agreements between the Department of Health (DH) and the pharmaceutical industry (Farmaindustria), first for the period 1995-1997, which imposed a ceiling on... 

Note that in the Buck and the Buck-Boost, the input capacitor is included in the critical path. That implies we need very good input decoupling in these topologies (for the power section). So, besides the necessary bulk capacitor for the power stage (typically a tantalum or aluminum electrolytic of large capacitance), we should also place a small ceramic capacitor (about 0.1 to IpF) directly between the quiet end of the switch (i.e., at the supply side) and the ground—and also as close as possible to the switch. 

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