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Understanding Cross-Country Differences In Health Status And Expenditures

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  • Raquel Fonseca

    (UQAM - Université du Québec à Montréal = University of Québec in Montréal, CIRANO - Centre interuniversitaire de recherche en analyse des organisations - UQAM - Université du Québec à Montréal = University of Québec in Montréal)

  • François Langot

    (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, GAINS - Groupe d'Analyse des Itinéraires et des Niveaux Salariaux - UM - Le Mans Université)

  • Pierre-Carl Michaud

    (HEC Montréal - HEC Montréal, NBER - National Bureau of Economic Research [New York] - NBER - The National Bureau of Economic Research)

  • Thepthida Sopraseuth

    (THEMA - Théorie économique, modélisation et applications - CNRS - Centre National de la Recherche Scientifique - CY - CY Cergy Paris Université)

Abstract

Using a general equilibrium heterogeneous agent model featuring health production, we quantifythe relative contribution of price distortions in the health market, TFP and other health risks inexplaining 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 differencein health spending (as a share of GDP) and 30% of the difference in health status between Europeand the U.S. We estimate a one percentage point negative impact on the life-time cost-of-living ofAmericans from higher prices due to inefficiencies.

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  • Raquel Fonseca & François Langot & Pierre-Carl Michaud & Thepthida Sopraseuth, 2022. "Understanding Cross-Country Differences In Health Status And Expenditures," Working Papers hal-03679009, HAL.
    • Handle: RePEc:hal:wpaper:hal-03679009
    Note: View the original document on HAL open archive server: https://cyu.hal.science/hal-03679009
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    More about this item

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • I10 - Health, Education, and Welfare - - Health - - - General
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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