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A Macroeconomic Analysis of Publicly Funded Health Care
Author(s) -
Bednarek Heather L.,
Pecchenino Rowena A.
Publication year - 2002
Publication title -
journal of public economic theory
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.809
H-Index - 32
eISSN - 1467-9779
pISSN - 1097-3923
DOI - 10.1111/1467-9779.00097
Subject(s) - generosity , welfare , economics , health care , public economics , medical care , social welfare , socioeconomic status , social welfare function , general equilibrium theory , welfare system , set (abstract data type) , overlapping generations model , function (biology) , medical expenses , actuarial science , microeconomics , economic growth , medicine , political science , population , environmental health , emergency medicine , programming language , family medicine , evolutionary biology , computer science , law , market economy , biology
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.