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A comparative analysis of some policy options to reduce rationing in the UK's NHS: Lessons from a general equilibrium model incorporating positive health effects

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Author Info

  • Rutten, Martine
  • Reed, Geoffrey

Abstract

This paper seeks to determine the macro-economic impacts of changes in health care provision. The resource allocation issues have been explored in theory, by applying the Rybczynski theorem, and empirically, using a computable general equilibrium (CGE) model for the UK with a detailed health component. From the theory, changes in non-health outputs are shown to depend on factor-bias and scale effects, the net effects generally being indeterminate. From the applied model, a rise in the National Health Service (NHS) budget is shown to yield overall welfare gains, which fall by two-thirds assuming health care-specific factors. A nominally equivalent migration policy yields even higher welfare gains.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Health Economics.

Volume (Year): 28 (2009)
Issue (Month): 1 (January)
Pages: 221-233

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Handle: RePEc:eee:jhecon:v:28:y:2009:i:1:p:221-233

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Web page: http://www.elsevier.com/locate/inca/505560

Related research

Keywords: Computable general equilibrium International trade theory International migration Health care Labour markets;

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Cited by:
  1. repec:fsc:fspubl:13 is not listed on IDEAS
  2. Elisabeth Christen & Joseph Francois & Bernard Hoekman, 2012. "CGE modeling of market access in services," Working Papers 2012-13, Faculty of Economics and Statistics, University of Innsbruck.
  3. Christen, Elisabeth & Francois, Joseph & Hoekman, Bernard, 2013. "Computable General Equilibrium Modeling of Market Access in Services," Handbook of Computable General Equilibrium Modeling, Elsevier.
  4. Marcus Keogh-Brown & Richard Smith & John Edmunds & Philippe Beutels, 2010. "The macroeconomic impact of pandemic influenza: estimates from models of the United Kingdom, France, Belgium and The Netherlands," The European Journal of Health Economics, Springer, vol. 11(6), pages 543-554, December.

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