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Health Capital Taxation

Author

Listed:
  • Job Boerma

    (University of Minnesota)

  • Ellen McGrattan

    (University of Minnesota)

Abstract

This paper studies the design of health care and tax policies in a quantitative macroeconomic model. We theoretically and quantitatively characterize the optimal taxation on consumption, health investments, earnings and capital investments. Policies are constrained due to private information with respect to shocks to household labor productivity and health status. We compare the results to actual policies and household allocations in the Netherlands, a country with a single-payer system but vast differences in health expenditures and mortality rates across income groups.

Suggested Citation

  • Job Boerma & Ellen McGrattan, 2018. "Health Capital Taxation," 2018 Meeting Papers 204, Society for Economic Dynamics.
    • Handle: RePEc:red:sed018:204
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    References listed on IDEAS

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    Cited by:

    1. John Bailey Jones & Aaron Steelman, 2019. "Lifetime Medical Spending of Retirees," Richmond Fed Economic Brief, Federal Reserve Bank of Richmond, issue May.

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