Abstract and Keywords
This article discusses preventive vaccines, focusing on features that differentiate these vaccines from other biopharmaceuticals. The external costs of infectious diseases imply external benefits from effective vaccines, and this has motivated public mandates, purchasing, and subsidies to demand for vaccines in most countries and government subsidies to supply for particular products, such as Project Bioshield in the United States. The article reviews these issues and then discusses factors that have contributed to the existence of few or sole suppliers of individual vaccines in the United States and possible policy responses.
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