Title: Healthcare expenditure and income generation: a US case

Authors: Claudio Socci; Maurizio Ciaschini; Rosita Pretaroli; Francesca Severini

Addresses: Department of Economics and Law, University of Macerata, Via Crescimbeni 14, 62100 Macerata, Italy ' Department of Economics and Law, University of Macerata, Via Crescimbeni 14, 62100 Macerata, Italy ' Department of Economics and Law, University of Macerata, Via Crescimbeni 14, 62100 Macerata, Italy ' Department of Economics and Law, University of Macerata, Via Crescimbeni 14, 62100 Macerata, Italy

Abstract: As well as a policy variable that has the potential to affect economic growth, a reform of healthcare expenditure involves the change of GDP because of its role played inside the processes of generation and distribution of income. In this paper, an effort is made to verify, through the macro multipliers approach, the possibility to design a convenient policy for healthcare expenditure. Such a policy permits to rule the incidence of health's expenditure with respect to total output and without neglecting the effects that it originates on the main macroeconomic variables like as GDP. The empirical analysis is built on an social accounting matrix (SAM) framework developed for the USA socio-economic system. The convenient policy differs from selective policy for health sector. The first one implies a complex redistribution of the resources in order to achieve the best result in terms of reduction of the ratio between health expenditure and GDP but without depressing total industrial output and income generation.

Keywords: healthcare expenditure; MM approach; social accounting matrix; SAM; multi-sectoral extended model.

DOI: 10.1504/IJHP.2019.101685

International Journal of Healthcare Policy, 2019 Vol.1 No.1, pp.24 - 51

Received: 09 Dec 2014
Accepted: 23 Mar 2015
Published online: 21 Aug 2019 *