Understanding Cross-Country Differences In Health Status And Expenditures

Raquel Fonseca (1, 2) , François Langot (3, 4) , Pierre-Carl Michaud (5, 6) , Thepthida Sopraseuth (7)

1 UQAM - Université du Québec à Montréal = University of Québec in Montréal
2 CIRANO - Centre interuniversitaire de recherche en analyse des organisations
3 PSE - Paris School of Economics
4 GAINS - Groupe d'Analyse des Itinéraires et des Niveaux Salariaux
5 HEC Montréal - HEC Montréal
6 NBER - National Bureau of Economic Research [New York]
7 THEMA - Théorie économique, modélisation et applications

Using a general equilibrium heterogeneous agent model featuring health production, we quantifythe relative contribution of price distortions in the health market, TFP and other health risks inexplaining 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 differencein health spending (as a share of GDP) and 30% of the difference in health status between Europeand the U.S. We estimate a one percentage point negative impact on the life-time cost-of-living ofAmericans from higher prices due to inefficiencies.

Domaines: Economies et finances

Raquel Fonseca, François Langot, Pierre-Carl Michaud, Thepthida Sopraseuth. Understanding Cross-Country Differences In Health Status And Expenditures. 2022. ⟨hal-03679009⟩