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Medical Consumption over the Life Cycle: Facts from a U.S. Medical Expenditure Panel Survey

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  • Juergen Jung

    ()
    (Department of Economics, Towson University)

  • Chung Tran

    ()
    (Research School of Economics, The Australian National University)

Abstract

We investigate the association between age and medical spending in the U.S. using data from the Medical Expenditure Panel Survey (MEPS). We estimate a partial linear seminonparametric model and construct "pure" life-cycle profiles of health spending simultaneously controlling for time effects (i.e. institutional changes and business cycles effects) and cohort effects (i.e. generation specific conditions). We find that time and cohort effects introduce a significant estimation bias into predictions of health expenditures per age group, especially for individuals older than 60 years. The estimation biases introduced by cohort effects increase monotonically with age while time effects are non-monotone. Overall, cohort effect biases dominate time effect biases in magnitude for high age groups.

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File URL: http://www.towson.edu/cbe/economics/workingpapers/2010-09.pdf
File Function: First version, 2010
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Bibliographic Info

Paper provided by Towson University, Department of Economics in its series Working Papers with number 2010-09.

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Length: 31 pages
Date of creation: Apr 2010
Date of revision: Mar 2013
Handle: RePEc:tow:wpaper:2010-09

Contact details of provider:
Postal: Towson, Maryland 21252-0001
Phone: 410-704-2959
Fax: 410-704-3424
Web page: http://www.towson.edu/cbe/economics/
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Related research

Keywords: Age dependent U.S. health care spending; U.S. health expenditure decomposition; life-cycle profiles; partial linear models; pseudo panels; medical expenditure panel survey (MEPS).;

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References

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Citations

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Cited by:
  1. Sheng-Ti Hung & Kevin X.D. Huang & Hui He, 2013. "Substituting Leisure for Health Expenditure: A General Equilibrium-Based Empirical Investigation," 2013 Meeting Papers 1310, Society for Economic Dynamics.
  2. Laurence Ales & Roozbeh Hosseini & Larry Jones, . "Is There ``Too Much'''' Inequality in Health Spending Across Income Groups?," GSIA Working Papers 2014-E18, Carnegie Mellon University, Tepper School of Business.
  3. Shuyun May Li, Solmaz Moslehi, Siew Ling Yew, 2012. "Public-Private Mix of Health Expenditure: A Political Economy Approach and A Quantitative Exercise," Department of Economics - Working Papers Series 1157, The University of Melbourne.
  4. Juergen Jung & Chung Tran, 2014. "Market Inefficiency, Insurance Mandate and Welfare: U.S. Health Care Reform 2010," Working Papers 2014-01, Towson University, Department of Economics, revised Feb 2014.
  5. Sarah Brockhoff & Stéphane Rossignol & Emmanuelle Taugourdeau, 2012. "The three worlds of welfare capitalism revisited," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00679066, HAL.
  6. Hui He & Kevin x.d. Huang, 2013. "Why Do Americans Spend So Much More on Health Care than Europeans?--A General Equilibrium Macroeconomic Analysis," Vanderbilt University Department of Economics Working Papers 13-00005, Vanderbilt University Department of Economics.
  7. Kevin X. D. Huang & Hui He, 2013. "Why Do Americans Spend So Much More on Health Care than Europeans?," Vanderbilt University Department of Economics Working Papers 13-00021, Vanderbilt University Department of Economics.

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