Technology Progress and Rising Healthcare Expenditure in the U.S.

Document Type

Article

Publication Date

6-24-2019

Department

Economic and Workforce Development

Abstract

Technology is widely recognized as a core driver of healthcare expenditure (HCE) in the literature. Since technology is not an easily measurable variable, past studies have incorporated measures to proxy technological changes. However, there is no comprehensive study that has compared the technological effects on U.S. HCE, using alternative input and output technology proxies. Our estimates suggest that, depending on the technology proxy, the effect of technology on HCE, ranging from 0.25 to 0.87, is smaller when output proxies are used relative to input proxies.

Publication Title

Applied Economics Letters

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