Adjusting National Accounting for Health: Is the Business Cycle Countercyclical?
AbstractMany national accounts of economic output and prosperity, such as gross domestic product (GDP) or net domestic product (NDP), offer an incomplete picture by ignoring, for example, the value of leisure, home production, and the value of health. Previous discussed shortcomings of such accounts have focused on how unobserved dimensions affect GDP levels but not their cyclicality, which affects the measurement of the business cycle. This paper proposes a new methodology to measure economic fluctuations that incorporates monetized changes in health of the population in the United States and globally during the past 50 years. In particular, we incorporate in GDP the dollar value of mortality, treating it as depreciation in human capital analogous to how net domestic product (NDP) treats depreciation of physical capital. Because mortality tends to be pro‐cyclical, we find that adjusting for mortality reduces the measured deviations of GDP from trend during the past 50 years by about 30% both in the United States and internationally.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 19058.
Date of creation: May 2013
Date of revision:
Note: EFG HC HE
Contact details of provider:
Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Web page: http://www.nber.org
More information through EDIRC
Find related papers by JEL classification:
- E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
- I1 - Health, Education, and Welfare - - Health
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-05-24 (All new papers)
- NEP-BEC-2013-05-24 (Business Economics)
- NEP-HEA-2013-05-24 (Health Economics)
- NEP-MAC-2013-05-24 (Macroeconomics)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Urbanos-Garrido, Rosa M. & Gonzalez Lopez-Valcarcel, Beatriz, 2013. "Desempleo y salud: Un anÃ¡lisis de la repercusiÃ³n de la crisis econÃ³mica sobre la salud de los espaÃ±oles/Unemployment and Health: An Analysis of the Impact of the Economic Crisis on the Health of t," Estudios de EconomÃa Aplicada, Estudios de EconomÃa Aplicada, vol. 31, pages 303-326, Septiembr.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.