On the Anatomy of Medical Progress Within an Overlapping Generations Economy.
Health care
Life-cycle model
Longevity
Medical innovation
Overlapping generations
Value of life
Journal
De Economist
ISSN: 0013-063X
Titre abrégé: Economist (Leiden)
Pays: Netherlands
ID NLM: 101093088
Informations de publication
Date de publication:
2020
2020
Historique:
entrez:
7
7
2020
pubmed:
7
7
2020
medline:
7
7
2020
Statut:
ppublish
Résumé
We study medical progress within a two-sector economy of overlapping generations subject to endogenous mortality. Individuals demand health care with a view to lowering mortality over their life-cycle. We characterise the individual optimum and the general equilibrium, and study the impact of a major medical innovation leading to an improvement in the effectiveness of health care. We find that general equilibrium effects dampen strongly the increase in health care usage following medical innovation. Moreover, an increase in savings offsets the negative impact on GDP per capita of a decline in the support ratio. Finally, we show that the reallocation of resources between the final goods and health care sector, following the innovation, plays a crucial role in shaping the general equilibrium impact.
Identifiants
pubmed: 32624586
doi: 10.1007/s10645-020-09360-3
pii: 9360
pmc: PMC7319427
doi:
Types de publication
Journal Article
Langues
eng
Pagination
215-257Informations de copyright
© The Author(s) 2020.
Déclaration de conflit d'intérêts
Conflict of interestThe authors declare that they have no conflict of interest.
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