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More life vs. more goods: explaining rising health expenditures

  • Charles I. Jones

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.

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File URL: http://www.frbsf.org/publications/economics/letter/2005/el2005-10.html
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File URL: http://www.frbsf.org/publications/economics/letter/2005/el2005-10.pdf
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Article provided by Federal Reserve Bank of San Francisco in its journal FRBSF Economic Letter.

Volume (Year): (2005)
Issue (Month): may27 ()
Pages:

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Handle: RePEc:fip:fedfel:y:2005:i:may27:n:2005-10
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  1. Robert E. Hall & Charles I. Jones, 2005. "The value of life and the rise in health spending," Proceedings, Federal Reserve Bank of San Francisco.
  2. 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.
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