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The convergence of health care expenditure in the US states

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  • Zijun Wang

    (Private Enterprise Research Center, Texas A&M University, College Station, TX, USA)

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    Abstract

    In response to rising health care costs, many have called for more effective regional health policy coordination. In this paper, we address the issue by examining the degree of convergence in per capita health care expenditure and its nine components across the US states from 1980 to 2004. The major finding is the moderate evidence of convergence in total health care expenditure and the diverse performance of the expenditure components regarding convergence. We also find hospital care to be responsible for the bulk of cross-state convergence in total expenditure. The expenditure on prescription drugs is the most important diverging factor. Policy implications of these empirical results are discussed. Copyright © 2008 John Wiley & Sons, Ltd.

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    File URL: http://hdl.handle.net/10.1002/hec.1343
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    Bibliographic Info

    Article provided by John Wiley & Sons, Ltd. in its journal Health Economics.

    Volume (Year): 18 (2009)
    Issue (Month): 1 ()
    Pages: 55-70

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    Handle: RePEc:wly:hlthec:v:18:y:2009:i:1:p:55-70

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    Web page: http://www3.interscience.wiley.com/cgi-bin/jhome/5749

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    9. 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. Andrea Leiter & Engelbert Theurl, 2009. "The Convergence of Health Care Financing Structures: Empirical Evidence from OECD-Countries," NRN working papers 2009-12, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.
    2. Wen-Yi Chen, 2013. "Does healthcare financing converge? Evidence from eight OECD countries," International Journal of Health Care Finance and Economics, Springer, vol. 13(3), pages 279-300, December.
    3. Julio Pombo-Romero & Luis Varela & Carlos Ricoy, 2013. "Diffusion of innovations in social interaction systems. An agent-based model for the introduction of new drugs in markets," The European Journal of Health Economics, Springer, vol. 14(3), pages 443-455, June.

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