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A comparison of the USA health care effort with other OECD countries

Author

Listed:
  • Joan Gil

    (Universitat de Barcelona)

  • Eduard Gracia

    (Deloitte Consulting (USA))

Abstract

We use a sample of OECD countries in order to better understand why the US health care expenditure as a percentage of its Gross Domestic Product («health care effort») is so far above any other. To this end we employ a descriptive cross-country methodology based partially on econometric estimations, synthetic indicators and the Lerner's formula of market power, that allows us to dismiss as explanatory variables all those factors that were not differential across the sample. We advance the exploratory hypothesis that the availability of a universal public health coverage would increase the price elasticity of demand and thus would reduce the control of prices by the suppliers. Classification-JEL : H51, I18.

Suggested Citation

  • Joan Gil & Eduard Gracia, 2002. "A comparison of the USA health care effort with other OECD countries," Hacienda Pública Española / Review of Public Economics, IEF, vol. 161(2), pages 31-48, June.
    • Handle: RePEc:hpe:journl:y:2002:v:161:i:2:p:31-48
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    References listed on IDEAS

    as
    1. Parkin, David & McGuire, Alistair & Yule, Brian, 1987. "Aggregate health care expenditures and national income : Is health care a luxury good?," Journal of Health Economics, Elsevier, vol. 6(2), pages 109-127, June.
    2. Joseph P. Newhouse, 1992. "Medical Care Costs: How Much Welfare Loss?," Journal of Economic Perspectives, American Economic Association, vol. 6(3), pages 3-21, Summer.
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    Cited by:

    1. Pedro Monge Lozano & Antonio Pizarro Gómez, 2003. "Características de los hospitales españoles," CIRIEC-España, revista de economía pública, social y cooperativa, CIRIEC-España, issue 46, pages 213-243, November.

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    More about this item

    Keywords

    US health care spending; cross-country health care comparisons; price discipline.;
    All these keywords.

    JEL classification:

    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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