More life vs. more goods: explaining rising health expenditures
Are health expenditures rising for reasons other than waste or fraud? If so, do these reasons portend a continuation of this rapid pace of increase? Is there an end in sight? This Economic Letter draws on recent economic research (Hall and Jones 2004) to explore some possible answers to these questions. One of the perhaps surprising conclusions from this research is that the rising health share may reflect the natural course of economic growth: as we get richer and richer, one of the most valuable and productive opportunities for our spending is to purchase better health and longer lives.
Volume (Year): (2005)
Issue (Month): may27 ()
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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Joseph P. Newhouse, 1992. "Medical Care Costs: How Much Welfare Loss?," Journal of Economic Perspectives, American Economic Association, vol. 6(3), pages 3-21, Summer.
- Robert E. Hall & Charles I. Jones, 2005. "The value of life and the rise in health spending," Proceedings, Federal Reserve Bank of San Francisco.