%0 Report
        %A Fonseca, Raquel
%A Michaud, Pierre-Carl
%A Galama, Titus
%A Kapteyn, Arie
        %T On The Rise of Health Spending and Longevity
        %D 2009
        %8 2009 Dec
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 4622
        %U https://www.iza.org/publications/dp4622
        %X We use a calibrated stochastic life-cycle model of endogenous health spending, asset accumulation and retirement to investigate the causes behind the increase in health spending and life expectancy over the period 1965-2005. We estimate that technological change along with the increase in the generosity of health insurance may explain independently 53% of the rise in health spending (insurance 29% and technology 24%) while income less than 10%. By simultaneously occurring over this period, these changes may have lead to a "synergy" or interaction effect which helps explain an additional 37% increase in health spending. We estimate that technological change, taking the form of increased productivity at an annual rate of 1.8%, explains 59% of the rise in life expectancy at age 50 over this period while insurance and income explain less than 10%.
        %K insurance
%K health spending
%K demand for health
%K technological change
%K longevity