TY  - RPRT
        AU  - Fonseca, Raquel
AU  - Michaud, Pierre-Carl
AU  - Galama, Titus
AU  - Kapteyn, Arie
        TI  - On The Rise of Health Spending and Longevity
        PY  - 2009/Dec/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 4622
        UR  - https://www.iza.org/publications/dp4622
        AB  - 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%.
        KW  - insurance
KW  - health spending
KW  - demand for health
KW  - technological change
KW  - longevity
        ER  -