On The Rise of Health Spending and Longevity
AbstractWe use a calibrated stochastic life-cycle model of endogenous health spending, asset accumulation and retirement to investigate the causes behind the increase in health spending and life expectancy over the period 1965-2005. We estimate that technological change along with the increase in the generosity of health insurance may explain independently 53% of the rise in health spending (insurance 29% and technology 24%) while income less than 10%. By simultaneously occurring over this period, these changes may have lead to a "synergy" or interaction effect which helps explain an additional 37% increase in health spending. We estimate that technological change, taking the form of increased productivity at an annual rate of 1.8%, explains 59% of the rise in life expectancy at age 50 over this period while insurance and income explain less than 10%.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4622.
Length: 51 pages
Date of creation: Dec 2009
Date of revision:
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Other versions of this item:
- I10 - Health, Education, and Welfare - - Health - - - General
- I38 - Health, Education, and Welfare - - Welfare and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
- J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
This paper has been announced in the following NEP Reports:
- NEP-AGE-2010-01-10 (Economics of Ageing)
- NEP-ALL-2010-01-10 (All new papers)
- NEP-HEA-2010-01-10 (Health Economics)
- NEP-IAS-2010-01-10 (Insurance Economics)
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- On The Rise of Health Spending and Longevity
by Ariel Goldring in Free Market Mojo on 2010-01-25 09:00:20
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