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Aging, Health and Aggregate Medical Care Spending in France

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  • Michel Grignon

Abstract

I investigate the role of education on health, using country level data and the production frontier framework suggested by the World Health Organization to assess performances of health care systems. I find that the role of human capital is much smaller than what appears in the WHO frontier model, and the relationship exhibits diminishing return in the observed range. Taking into account the non-linearity in this relationship generates a different ranking of countries according to the efficiency of their health care system. This suggests that the method currently used by the WHO indeed favours health care systems operating in countries which underinvested in education in the past. The relationship between education and health changes around an average value of 8 years of education per individual: above that level, the return of years of education in health is zero.

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File URL: http://socserv.mcmaster.ca/econ/rsrch/papers/archive/2005-06.pdf
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Bibliographic Info

Paper provided by McMaster University in its series Department of Economics Working Papers with number 2005-06.

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Length: 48 pages
Date of creation: Aug 2005
Date of revision:
Handle: RePEc:mcm:deptwp:2005-06

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Keywords: Human capital; Rate of return; Economic impact; Efficiency;

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  1. Brigitte Dormont & Hélène Huber, 2006. "Ageing and changes in medical practices : reassessing theinfluence of demography," Post-Print halshs-00274723, HAL.
  2. Ernst R. Berndt & Iain M. Cockburn & Douglas L. Cocks & Arnold M. Epstein & Zvi Griliches, 1998. "Is Price Inflation Different for the Elderly? An Empirical Analysis of Prescription Drugs," NBER Chapters, in: Frontiers in Health Policy Research, volume 1, pages 33-76 National Bureau of Economic Research, Inc.
  3. Jonas Schreyogg, 2004. "Demographic Development and Moral Hazard: Health Insurance with Medical Savings Accounts," The Geneva Papers on Risk and Insurance, The International Association for the Study of Insurance Economics, vol. 29(4), pages 689-704, October.
  4. Dov Chernichovsky & Sara Markowitz, 2004. "Aging and aggregate costs of medical care: conceptual and policy issues," Health Economics, John Wiley & Sons, Ltd., vol. 13(6), pages 543-562.
  5. R.G. Evans & K.M. McGrail & S.G. Morgan & M.L. Barer & C. Hertzman, 2001. "APOCALYPSE NO: Population Aging and the Future of Health Care Systems," Social and Economic Dimensions of an Aging Population Research Papers 59, McMaster University.
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