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A Macroeconomic Analysis of Publicly Funded Health Care

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  • Bednarek, Heather L
  • Pecchenino, Rowena A

Abstract

In a general equilibrium, overlapping generations framework this paper examines how the tax-benefit system that underlies the U.S. health care system affects the well-being of different age groups, and the lifetime well-being of different socioeconomic groups, as well as society as a whole. We find that the optimal set and generosity of publicly funded health care programs is sensitive to the social welfare function and to the prices that various agents in society pay for medical care. Social welfare under the current financing system is also compared to alternative financing mechanisms such as Medical Savings Accounts. Copyright 2002 by Blackwell Publishing Inc.

Suggested Citation

  • Bednarek, Heather L & Pecchenino, Rowena A, 2002. "A Macroeconomic Analysis of Publicly Funded Health Care," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 4(2), pages 243-270.
    • Handle: RePEc:bla:jpbect:v:4:y:2002:i:2:p:243-70
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    Cited by:

    1. Christina M. L. Kelton & Robert P. Rebelein, 2007. "A General‐Equilibrium Analysis of Public Policy for Pharmaceutical Prices," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 9(2), pages 285-318, April.
    2. Mizushima, Atsue, 2009. "Intergenerational transfers of time and public long-term care with an aging population," Journal of Macroeconomics, Elsevier, vol. 31(4), pages 572-581, December.
    3. Ken-ichi Hashimoto & Ken Tabata, 2010. "Population aging, health care, and growth," Journal of Population Economics, Springer;European Society for Population Economics, vol. 23(2), pages 571-593, March.
    4. Tabata, Ken, 2005. "Population aging, the costs of health care for the elderly and growth," Journal of Macroeconomics, Elsevier, vol. 27(3), pages 472-493, September.

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