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Is the United States an outlier in health care and health outcomes? A preliminary analysis

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Author Info

  • William Comanor

    ()

  • H. Frech

    ()

  • Richard Miller

    ()

Abstract

U.S. health care is often seen as an outlier, with high costs and only middling outcomes. This view implies a household production function for health, with both health care and lifestyle serving as inputs. Building on earlier work by Miller and Frech (2004), we make this argument explicit by estimating a production function from augmented OECD data. This allows us to determine whether the U.S. is literally an outlier; which turns on whether the United States is very far off the production surface. We find that the Unites States is somewhat less productive than the average OECD country, but that a substantial part of the observed difference results from poor lifestyle choices, particularly obesity. Copyright Springer Science + Business Media, Inc. 2006

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File URL: http://hdl.handle.net/10.1007/s10754-006-6863-8
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Bibliographic Info

Article provided by Springer in its journal International Journal of Health Care Finance and Economics.

Volume (Year): 6 (2006)
Issue (Month): 1 (March)
Pages: 3-23

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Handle: RePEc:kap:ijhcfe:v:6:y:2006:i:1:p:3-23

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Web page: http://www.springerlink.com/link.asp?id=106603

Related research

Keywords: Obesity; Health production; U.S. health care; Comparative health care systems;

References

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  1. Frech, H. E. III & Miller, Richard D. Jr., 1996. "The Productivity of Health Care and Pharmaceuticals: An International Comparison," University of California at Los Angeles, Research Program in Pharmaceutical Economics and Policy qt0d90459k, Research Program in Pharmaceutical Economics and Policy, UCLA.
  2. Patricia M. Danzon & Allison Percy, 1999. "The Effects of Price Regulation on Productivity in Pharmaceuticals," NBER Chapters, in: International and Interarea Comparisons of Income, Output, and Prices, pages 371-418 National Bureau of Economic Research, Inc.
  3. Szuba, Tadeusz J., 1986. "International comparison of drug consumption: Impact of prices," Social Science & Medicine, Elsevier, vol. 22(10), pages 1019-1025, January.
  4. Peltzman, Sam, 1975. "The Effects of Automobile Safety Regulation," Journal of Political Economy, University of Chicago Press, vol. 83(4), pages 677-725, August.
  5. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-38, May.
  6. David M. Cutler, 1994. "A Guide to Health Care Reform," Journal of Economic Perspectives, American Economic Association, vol. 8(3), pages 13-29, Summer.
  7. Chou, Shin-Yi & Grossman, Michael & Saffer, Henry, 2004. "An economic analysis of adult obesity: results from the Behavioral Risk Factor Surveillance System," Journal of Health Economics, Elsevier, vol. 23(3), pages 565-587, May.
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Cited by:
  1. Kevin x.d. Huang & Hui He & Sheng-ti Hung, 2013. "Substituting Leisure for Health Expenditure: A General Equilibrium-Based Empirical Investigation," Vanderbilt University Department of Economics Working Papers 13-00020, Vanderbilt University Department of Economics.
  2. Verguet, Stéphane & Jamison, Dean T., 2013. "Performance in rate of decline of adult mortality in the OECD, 1970–2010," Health Policy, Elsevier, vol. 109(2), pages 137-142.

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