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  4. May 2020
  5. Advance Market Commitments: Insights from Theory and Experience

Advance Market Commitments: Insights from Theory and Experience

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Abstract

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.

Citation

Kremer, Michael, Jonathan Levin, and Christopher M. Snyder. 2020. "Advance Market Commitments: Insights from Theory and Experience." AEA Papers and Proceedings, 110: 269-73. DOI: 10.1257/pandp.20201017

Additional Materials

JEL Classification

  • I12 Health Behavior
  • I15 Health and Economic Development
  • I18 Health: Government Policy; Regulation; Public Health
  • J13 Fertility; Family Planning; Child Care; Children; Youth
  • O15 Economic Development: Human Resources; Human Development; Income Distribution; Migration
  • I12 Health Behavior
  • I15 Health and Economic Development