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Technology progress and rising healthcare expenditure in the U.S

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  • Mehdi Barati
  • Hadiseh Fariditavana

Abstract

Technology is widely recognized as a core driver of healthcare expenditure (HCE) in the literature. Since technology is not an easily measurable variable, past studies have incorporated measures to proxy technological changes. However, there is no comprehensive study that has compared the technological effects on U.S. HCE, using alternative input and output technology proxies. Our estimates suggest that, depending on the technology proxy, the effect of technology on HCE, ranging from 0.25 to 0.87, is smaller when output proxies are used relative to input proxies.

Suggested Citation

  • Mehdi Barati & Hadiseh Fariditavana, 2020. "Technology progress and rising healthcare expenditure in the U.S," Applied Economics Letters, Taylor & Francis Journals, vol. 27(6), pages 451-454, March.
    • Handle: RePEc:taf:apeclt:v:27:y:2020:i:6:p:451-454
    DOI: 10.1080/13504851.2019.1631434
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