Canada's lower prescription drug prices are the
result of a lower standard of living relative to the United
States, not because of Canadian drug price regulation.
These are the findings of two new studies,
Prescription Drug Prices in Canada and the United States, Part
1: A Comparative Survey
Part 2: Why the Difference?
, released today by the Fraser Institute. High American
prescription drug prices result primarily from America's position
as the world's most productive and wealthiest country.
The American attitude to Canada is generally thought to be one of
benign neglect. However, there is one area where many Americans
pay close attention to the Canadian scene: the differences in
prices of prescription drugs in the two countries. Because
prescription drugs are thought to be cheaper in Canada than they
are in the United States, many American politicians are proposing
that a Canadian-style regulation of drug prices be