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The U.S. health care expenditure: evidence from 2001 to 2009

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  • Reed Olsen
  • Hui-Kuan Tseng

Abstract

This study utilizes state-level data from 2001 to 2009 to estimate the impact of the 2007 financial crisis upon health care expenditures. Higher death rates are consistently found to have a positive and statistically significant impact on health expenditures. While mental health and COPD are not generally found to impact expenditures, increases in the percentage of the population diagnosed with cholesterol and obesity tend to increase health expenditures. Increases in health expenditures slowed considerably after the financial crisis. Even though recessions (high unemployment rates) are generally found to have a positive impact on health expenditures, the post-financial crisis time period is estimated to have much lower health expenditures than in other time periods. Our results can be used to give insight into the conditions under which the slower rate of increase in health expenditures can be expected to increase. More research will be needed to be able to more completely explore not only the reasons for these changes in health expenditures but also whether they are likely to continue into the future.

Suggested Citation

  • Reed Olsen & Hui-Kuan Tseng, 2016. "The U.S. health care expenditure: evidence from 2001 to 2009," Applied Economics, Taylor & Francis Journals, vol. 48(60), pages 5931-5940, December.
    • Handle: RePEc:taf:applec:v:48:y:2016:i:60:p:5931-5940
    DOI: 10.1080/00036846.2016.1189505
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