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A Golden Rule of Health Care

Author

Listed:
  • Marias H. Gestsson

    (Department of Economics, University of Iceland)

  • Gylfi Zoega

    (Department of Economics, University of Iceland
    Department of Economics, Mathematics & Statistics, Birkbeck)

Abstract

We derive a golden rule for the level of health care expenditures and find that the optimal level of life-extending health care expenditures should increase with rising productivity and retirement age, while the effects of improvement in medical technology are ambiguous.

Suggested Citation

  • Marias H. Gestsson & Gylfi Zoega, 2014. "A Golden Rule of Health Care," Birkbeck Working Papers in Economics and Finance 1412, Birkbeck, Department of Economics, Mathematics & Statistics.
    • Handle: RePEc:bbk:bbkefp:1412
    as

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    File URL: https://eprints.bbk.ac.uk/15291/1/15291.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Health care; golden rule; productivity.;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior

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