Fig. 3
From: Direct and indirect savings from parallel imports in Sweden
Estimated long-term price effects in percentages of on- and off-patent therapeutic alternatives, respectively; comparison of logarithmic-form and flexible-form estimates. The effects in the left panels are plotted holding N _ ThGenst at zero, while the effects in the right panels are plotted holding N _ Thit equal to N _ ThGenst. The smooth lines are the long-term effects predicted from the preferred specification of D _ Thst and lnN _ Thit (left panels) and of D _ Thst, D _ ThGenst, lnN _ Thit, and lnN _ ThGenst (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 _ Thit (left panels) and for the numbers of N _ Thit and N _ ThGenst (right panels), and Dummy CI, upper and Dummy CI, lower show the upper and lower bounds of the associated 95% confidence intervals. These estimates come from an IV specification including indicator variables for the numbers of therapeutic alternatives. However, groups with few observations were grouped together to avoid indicators that take the value of one for less than one percent of the observations. The estimates for these merged groups are plotted at the average value of N _ Thit and N _ ThGenst in each merged group, respectively. In the left panels, the x-axes are halted after N _ Thit = 10 of space concerns