Substituting Leisure for Health Expenditure: A General Equilibrium-Based Empirical Investigation
We develop a general equilibrium macroeconomic model with endogenous health accumulation, and use the model's equilibrium condition to estimate the elasticity of substitution between medical care and leisure time in maintaining health based on a cross-country panel dataset. Our econometric estimates imply that increasing health-enhancing leisure time can substantially reduce national health expenditure, and thus may also help resolve the pressing fiscal uncertainty. Our study highlights the importance of several current national initiatives, such as "Let's Move!", from not only health but macroeconomic perspectives. Our study also provides a guidance to a growing literature on macro-health in modeling health production.
|Date of creation:||2013|
|Date of revision:|
|Contact details of provider:|| Postal: Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA|
Web page: http://www.EconomicDynamics.org/
More information through EDIRC
References listed on IDEAS
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.:
- Juergen Jung & Chung Tran, 2010.
"Medical Consumption Over the Life Cycle: Facts from a U.S. Medical Expenditure Panel Survey,"
2010-08, School of Economics, The University of New South Wales.
- Juergen Jung & Chung Tran, 2010. "Medical Consumption over the Life Cycle: Facts from a U.S. Medical Expenditure Panel Survey," Working Papers 2010-09, Towson University, Department of Economics, revised Mar 2013.
- Contoyannis, Paul & Jones, Andrew M., 2004. "Socio-economic status, health and lifestyle," Journal of Health Economics, Elsevier, vol. 23(5), pages 965-995, September.
- Silvia Balia & Andrew M Jones, 2005.
"Mortality, lifestyle and socio-economic status,"
Health, Econometrics and Data Group (HEDG) Working Papers
05/02, HEDG, c/o Department of Economics, University of York.
- Sickles, Robin C & Yazbeck, Abdo, 1998. "On the Dynamics of Demand for Leisure and the Production of Health," Journal of Business & Economic Statistics, American Statistical Association, vol. 16(2), pages 187-97, April.
- Guggenberger, Patrik, 2010. "The Impact Of A Hausman Pretest On The Asymptotic Size Of A Hypothesis Test," Econometric Theory, Cambridge University Press, vol. 26(02), pages 369-382, April.
- Zhao, Kai, 2014.
"Social security and the rise in health spending,"
Journal of Monetary Economics,
Elsevier, vol. 64(C), pages 21-37.
- Juergen Jung & Chung Tran, 2008.
"The Macroeconomics of Health Savings Accounts,"
Caepr Working Papers
2007-023, Center for Applied Economics and Policy Research, Economics Department, Indiana University Bloomington.
- van Doorslaer, Eddy & Wagstaff, Adam & Bleichrodt, Han & Calonge, Samuel & Gerdtham, Ulf-G. & Gerfin, Michael & Geurts, Jose & Gross, Lorna & Hakkinen, Unto & Leu, Robert E., 1997. "Income-related inequalities in health: some international comparisons," Journal of Health Economics, Elsevier, vol. 16(1), pages 93-112, February.
- Richard W. Evans & Laurence J. Kotlikoff & Kerk L. Phillips, 2012.
"Game Over: Simulating Unsustainable Fiscal Policy,"
NBER Working Papers
17917, National Bureau of Economic Research, Inc.
- Lee E. Ohanian & Andrea Raffo & Richard Rogerson, 2006.
"Long-term changes in labor supply and taxes: evidence from OECD countries, 1956-2004,"
Research Working Paper
RWP 06-16, Federal Reserve Bank of Kansas City.
- Ohanian, Lee & Raffo, Andrea & Rogerson, Richard, 2008. "Long-term changes in labor supply and taxes: Evidence from OECD countries, 1956-2004," Journal of Monetary Economics, Elsevier, vol. 55(8), pages 1353-1362, November.
- Lee Ohanian & Andrea Raffo & Richard Rogerson, 2006. "Long-Term Changes in Labor Supply and Taxes: Evidence from OECD Countries, 1956-2004," NBER Working Papers 12786, National Bureau of Economic Research, Inc.
- Zhigang Feng, 2009. "Macroeconomic Consequences of Alternative Reforms to the Health Insurance System in the U.S," Working Papers 0908, University of Miami, Department of Economics.
- Grossman, Michael, 1972. "On the Concept of Health Capital and the Demand for Health," Journal of Political Economy, University of Chicago Press, vol. 80(2), pages 223-55, March-Apr.
- Ayse Imrohoroglu & Kaiji Chen, 2012.
"Debt and the U.S. Economy,"
2012 Meeting Papers
229, Society for Economic Dynamics.
- Kaiji Chenz & Ayse Imrohoroglu, 2014. "Debt in the U.S. Economy," Koç University-TUSIAD Economic Research Forum Working Papers 1401, Koc University-TUSIAD Economic Research Forum.
- Michael Insler, 2014.
"The Health Consequences of Retirement,"
Journal of Human Resources,
University of Wisconsin Press, vol. 49(1), pages 195-233.
- Christian Hagist & Laurence J. Kotlikoff, 2009. "Who’s going broke? Comparing growth in Public healthcare expenditure in Ten OECD Countries," Hacienda Pública Española, IEF, vol. 188(1), pages 55-72, March.
- Juergen Jung & Chung Tran, 2014. "Medical consumption over the life-cycle," Empirical Economics, Springer, vol. 47(3), pages 927-957, November.
- Robert E. Hall & Charles I. Jones, 2007. "The Value of Life and the Rise in Health Spending," The Quarterly Journal of Economics, Oxford University Press, vol. 122(1), pages 39-72.
- William Comanor & H. Frech & Richard Miller, 2006. "Is the United States an outlier in health care and health outcomes? A preliminary analysis," International Journal of Health Economics and Management, Springer, vol. 6(1), pages 3-23, March.
- David Card & Carlos Dobkin & Nicole Maestas, 2008. "The Impact of Nearly Universal Insurance Coverage on Health Care Utilization: Evidence from Medicare," American Economic Review, American Economic Association, vol. 98(5), pages 2242-58, December.
When requesting a correction, please mention this item's handle: RePEc:red:sed013:1310. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christian Zimmermann)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.