Understanding Cross-country Differences in Health Status and Expenditures

Understanding Cross-country Differences in Health Status and Expenditures

Short Summary:

Using a general equilibrium heterogeneous agent model featuring health production, we quantify the relative contribution of price distortions in the health market, TFP and other health risks in explaining cross-country differences in health expenditure (as a share of GDP) and health status. Estimated parameters reveal a substantial price wedge that explains at most 20% of the difference in health spending (as a share of GDP) and 30% of the difference in health status between Europe and the U.S. We estimate a one percentage point negative impact on the life-time cost-of-living of Americans from higher prices due to inefficiencies.

Publication Authors: Raquel Fonseca, François Langot, Pierre-Carl Michaud and Thepthida Sopraseuth.
Number: 20-04
Year: 2020
By | 2020-03-18T15:51:55+00:00 March 17th, 2020|Latest Publications|0 Comments

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