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A Macroeconomic Analysis of Publicly Funded Health Care

Heather L Bednarek and Rowena Pecchenino

Journal of Public Economic Theory, 2002, vol. 4, issue 2, 243-70

Abstract: 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. Copyright 2002 by Blackwell Publishing Inc.

Date: 2002
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Working Paper: A Macroeconomic Analysis of Publicly Funded Healthcare (1999)
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Journal of Public Economic Theory is currently edited by Rabah Amir, Gareth Myles and Myrna Wooders

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