Fig. 1
From: Direct and indirect savings from parallel imports in Sweden
Estimated long-term price effects in percentages of the number of parallel traders selling products with the same active substance and exchangeable products, respectively; comparison of logarithmic-form and flexible-form estimates. The effects in the left panels are plotted holding N _ PiEit at zero, while the effects in the right panels are plotted holding N _ PiSubstancest equal to N _ PiEit, see Table 1 for variable definitions. The smooth lines are the long-term effects predicted from the preferred specification of D _ PiSubstancest and lnN _ PiSubstancest (left panels) and of D _ PiSubstancest, D _ PiEit, lnN _ PiSubstancest, and lnN _ PiEit (right panels). The gray area shows the associated 95% confidence intervals. Dummy point est. shows the long-term effects of indicator variables for the numbers of N _ PiSubstancest (left panels) and for the numbers of N _ PiSubstancest and N _ PiEit (right panels), and Dummy CI, upper and Dummy CI, lower show the lower and upper bounds of the associated 95% confidence intervals. These estimates come from an IV specification including indicator variables for the numbers of parallel importers. However, groups with few observations were grouped together to avoid indicators that take the value of one for less than 1% of the observations. The estimates for these merged groups are plotted at the average value of N _ PiSubstancest and N _ PiEit in each merged group, respectively