The Advance Market Commitment

NBER: Ten years ago, donors committed $1.5 billion to a pilot Advance Market Commitment (AMC) to help purchase pneumococcal vaccine for low-income countries. The AMC aimed to encourage the development of such vaccines, ensure distribution to children in low-income countries, and pilot the AMC mechanism for possible future use. Three vaccines have been developed and more than 150 million children immunized, saving an estimated 700,000 lives. This paper reviews the economic logic behind AMCs, the experience with the pilot, and key issues for future AMCs.

That’s Kremer, Levin and Snyder. Definitely deserving of a Nobel and kudos to Bill and Melinda Gates for being early and major supporters.

Comments

"Three vaccines have been developed and more than 150 million children immunized, saving an estimated 700,000 lives."

It means fewer than half life for each grpup of 100 children immunized has been saved. About 0.15 life saved per children immunized per vaccine developed.

That's a pretty good record for a vaccine. At the height of polio in the U.S. several thousand people would die from the disease each year. The U.S. population in 1950 was 150 million so universal vaccination saved maybe 40-60,000 lives over a period of 10 years. (And, yes, the benefit is understated because polio would sometimes disable rather than kill its victims.)

The much more useful metric is the one given in the paper of the cost of avoiding the loss of a disability adjusted life year. Their result: $83.

a disabling trait exists in all procedures and vaccines. Take a shot for instance, it inhibits the body's ability to tell time for a distance of about two steps.

"The much more useful metric is the one given in the paper of the cost of avoiding the loss of a disability adjusted life year. Their result: $83."

+1

I mean, per 100 children immunized per vaccine developed.

How is that a relevant metric? I'd imagine a more useful measure would be the cost of each life saved. If the 1.5 billion originally pledged was the sum total cost of the program then it would have cost 2000$ per life saved, which seems like a pretty good return

But let's suppose of of those lives were Mugabe's or Amin's. Would theningestment have been so good?

"donors committed $1.5 billion to a pilot Advance Market Commitment (AMC) to help purchase..."

... were these donors government or private entities ?

how are donations/charity a noteworthy & advanced "Market" mechanism ?

Because the vaccines didn't exist yet. The market mechanism was to recommit to buying vaccines once they were developed, incentivizing others to develop the vaccines. This is a market mechanism because the donors didnt fund research directly (picking winners)

So much virtue signaling. I bet Bill feels like a very special Democrat.

Not only signaling, but actual virtue as well, which is the important thing to most people.

an erschatz sheep indeed.

A few days after dissing the South Korean regime, American president Donald Trump lavishly praised Brazil's government.

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