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9/2008

DEPFID Working Paper 9/2008 - Abstract

The global strategy to cope with H5N1: the property rights caveat

Marcello Basili
 

Shortage of stockpiled antiviral drugs and insufficient production capacity of vaccines make the possible avian flu pandemic a global disaster. Catastrophic consequences in social and economic losses loom over the near future of humans but they derive from a wrong business model based on private production granted by patent rights and price discrimination. In this paper a new sustainable economic model for vaccines and antiviral drugs production based on liability rule and trust fund is advanced.

Keywords: avian flu, ambiguity, incomplete rights, market failure

JEL Classification: D81, I18

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