Substituting Leisure for Health Expenditure: A General Equilibrium-Based Empirical Investigation
AbstractWe develop a general equilibrium macroeconomic model with endogenous health accumulation, and use the model's equilibrium condition to estimate the elasticity of substitution between medical care and leisure time in maintaining health based on a cross-country panel dataset. Our econometric estimates imply that increasing health-enhancing leisure time can substantially reduce national health expenditure, and thus may also help resolve the pressing fiscal uncertainty. Our study highlights the importance of several current national initiatives, such as "Let's Move!", from not only health but macroeconomic perspectives. Our study also provides a guidance to a growing literature on macro-health in modeling health production.
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Bibliographic InfoPaper provided by Society for Economic Dynamics in its series 2013 Meeting Papers with number 1310.
Date of creation: 2013
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Other versions of this item:
- Kevin x.d. Huang & Hui He & Sheng-ti Hung, 2013. "Substituting Leisure for Health Expenditure: A General Equilibrium-Based Empirical Investigation," Vanderbilt University Department of Economics Working Papers 13-00020, Vanderbilt University Department of Economics.
- E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
- I1 - Health, Education, and Welfare - - Health
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