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A Comparison of the USA Health Care Effort with other OECD Countries

Hacienda Publica Espanola, Vol. 161, No. 2, 2002, Instituto de Estudios Fiscales, Copyright

18 Pages Posted: 20 Jul 2003  

Eduard Gracia

University of Barcelona

Joan Gil

University of Barcelona - Department of Economic Theory

Abstract

We use a sample of OECD countries in order to better understand why the US health care expenditure as a percentage of its Gross Domestic Product ("health care effort") is so far above any other. To this end we employ a descriptive cross-country methodology based partially on econometric estimations, synthetic indicators and the Lerner's formula of market power, that allows us to dismiss as explanatory variables all those factors that were not differential across the sample. We advance the exploratory hypothesis that the availability of a universal public health coverage would increase the price elasticity of demand and thus would reduce the control of prices by the suppliers.

Keywords: US health care spending, cross-country health care comparisons, price discipline

JEL Classification: H51, I18

Suggested Citation

Gracia, Eduard and Gil, Joan, A Comparison of the USA Health Care Effort with other OECD Countries. Hacienda Publica Espanola, Vol. 161, No. 2, 2002, Instituto de Estudios Fiscales, Copyright. Available at SSRN: https://ssrn.com/abstract=410201 or http://dx.doi.org/10.2139/ssrn.410201

Eduard Gracia (Contact Author)

University of Barcelona ( email )

Gran Via de les Corts Catalanes, 585
Barcelona, 08007
Spain

Joan Gil TrasfĂ­

University of Barcelona - Department of Economic Theory ( email )

Barcelona
Spain
+34-93-402-4333 (Phone)
+34-93-402-1937 (Fax)

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