Cost disease of health care and no growth

Artikel

This study examines whether health care is affected by Baumol's cost disease in a scenario of no growth. Baumol's model implies that stagnant sectors are driven by wage increases in excess of productivity growth. But in a no growth economy the income is constant. It is investigated in two institutional proposals, selective reduction of productivity and reduction of working hours. In both scenarios the cost disease does not affects the health care. However, in the second scenario an important result is found. In this sector, with slow productivity growth, will be necessary a greater number of workers. The relative cost of health care will increase over the years. Therefore, although the cost disease does not affect the health sector in a no growth economy, the relative cost of health should continue to rise.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: Economic and Environmental Studies (E&ES) ; ISSN: 2081-8319 ; Volume: 16 ; Year: 2016 ; Issue: 4 ; Pages: 717-728 ; Opole: Opole University, Faculty of Economics

Classification and Topics

• Classification: Wirtschaft ; Health: General ; Economic Growth and Aggregate Productivity: General ; Health: Government Policy; Regulation; Public Health
• Subject: health care costs ; Baumol cost disease ; no growth

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Russo, Letícia Xander
• Event: Veröffentlichung
• (who): Opole University, Faculty of Economics
• (where): Opole
• (when): 2016

Further information

• Handle: http://hdl.handle.net/10419/178944
• Last update: 10.03.2025, 11:42 AM CET