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A Satellite Account for Health in the United States

Author

Listed:
  • David M. Cutler
  • Kaushik Ghosh
  • Kassandra L. Messer
  • Trivellore Raghunathan
  • Allison B. Rosen
  • Susan T. Stewart
Abstract
This paper develops a satellite account for the US health sector and measures productivity growth in health care for the elderly population between 1999 and 2012. We measure the change in medical spending and health outcomes for a comprehensive set of 80 conditions. Medical care has positive productivity growth over the time period, with aggregate productivity growth of 1.5 percent per year. However, there is significant heterogeneity in productivity growth. Care for cardiovascular disease has had very high productivity growth. In contrast, care for people with musculoskeletal conditions has been costly but has not led to improved outcomes.

Suggested Citation

  • David M. Cutler & Kaushik Ghosh & Kassandra L. Messer & Trivellore Raghunathan & Allison B. Rosen & Susan T. Stewart, 2022. "A Satellite Account for Health in the United States," American Economic Review, American Economic Association, vol. 112(2), pages 494-533, February.
    • Handle: RePEc:aea:aecrev:v:112:y:2022:i:2:p:494-533
    DOI: 10.1257/aer.20201480
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    Citations

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    Cited by:

    1. Abe C. Dunn & Lasanthi Fernando & Eli Liebman, 2023. "A Direct Measure of Medical Innovation on Health Care Spending: A Condition-Specific Approach," BEA Papers 0121, Bureau of Economic Analysis.
    2. Rude, Johanna & Weber, Lukas, 2024. "Is Baumol's Cost Disease Really a Disease? Healthcare Expenditure and Factor Reallocation," MPRA Paper 120873, University Library of Munich, Germany.
    3. Jui-fen Rachel Lu & Ying Isabel Chen & Karen Eggleston & Chih-Hung Chen & Brian Chen, 2023. "Assessing Taiwan’s pay-for-performance program for diabetes care: a cost–benefit net value approach," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 24(5), pages 717-733, July.
    4. Dauda, Seidu & Dunn, Abe & Hall, Anne, 2022. "A systematic examination of quality-adjusted price index alternatives for medical care using claims data," Journal of Health Economics, Elsevier, vol. 85(C).

    More about this item

    JEL classification:

    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • I10 - Health, Education, and Welfare - - Health - - - General

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