Template-Type: ReDIF-Paper 1.0
Title: Understanding Cross-country Differences in Health Status and Expenditures
Author-Name: Raquel Fonseca
Author-Name: François Langot
Author-Name: Pierre-Carl Michaud
Author-Name: Thepthida Sopraseuth
Creation-date: 2020
Abstract: Using a general equilibrium heterogeneous agent model featuring health production, we quantify the relative contribution of price distortions in the health market, TFP and other health risks in explaining cross-country differences in health expenditure (as a share of GDP) and health status. Estimated parameters reveal a substantial price wedge that explains at most 20% of the difference in health spending (as a share of GDP) and 30% of the difference in health status between Europe and the U.S. We estimate a one percentage point negative impact on the life-time cost-of-living of Americans from higher prices due to inefficiencies.
Classification-JEL: C51, D61, E21, I10, I32.
Keywords: Health production, health status, heterogeneous agent model, price indices.
File-URL: http://creei.ca/wp-content/uploads/2020/03/cahier_20_04_understanding_cross_country_differences_health_status_expenditures.pdf
File-Size: 1900
Handle: RePEc:rsi:creeic:2004