Output and inflation components of medical care and other spending changes.
Peden, Edgar A
Date of Pub
Lee, Mei L
From 1965 to 1990, spending on medical care rose from 5.9 to 12.2 percent of gross national product. This rise was the consequence
of greatly expanded government and government subsidized private insurance coverage operating in an environment where payments
for insured care by and large covered whatever costs were incurred. As a result, the personal consumption of medical care
experienced both output and price average growth rates strikingly above economywide norms. Indeed, the output growth rate
in this sector rivaled growth in several goods sectors with greatly expanded supplies. However, whereas goods in the latter
sectors have become more accessible through lower relative prices, consumers with insufficient insurance coverage are being
crowded out of the market for medical care by higher relative prices.
Health Expenditures/statistics & numerical data/trends : Inflation, Economic/statistics & numerical data : Insurance, Health/economics
: Models, Econometric : United States