Access to health care, medical progress and the emergence of the longevity gap: A general equilibrium analysis

15764 9 86762 2 246443 document 86762 MedproIII 17 01 19.pdf application/pdf 7bb57fb8a6c44148744ecc3bc5eeac0d MD5 545260 2019-02-28 06:54:19 https://pure.iiasa.ac.at/id/eprint/15764/1/MedproIII%2017%2001%2019.pdf 15764 1 1 application/pdf text en public cc_by_nc_4

MedproIII 17 01 19.pdf

accepted 86763 2 246446 document 86763 lightbox.jpg image/png d2439c6ecb2185c5d9cd813bf2218e1b MD5 40472 2019-02-28 07:04:34 https://pure.iiasa.ac.at/id/eprint/15764/2/lightbox.jpg 15764 2 2 image/png other Thumbnails conversion from text to thumbnail_lightbox en public

lightbox.jpg

preview.jpg

medium.jpg

small.jpg

indexcodes.txt

http://eprints.org/relation/isVersionOf https://pure.iiasa.ac.at/id/document/86762 http://eprints.org/relation/isVolatileVersionOf https://pure.iiasa.ac.at/id/document/86762 http://eprints.org/relation/isIndexCodesVersionOf https://pure.iiasa.ac.at/id/document/86762 archive 353 disk0/00/01/57/64 2019-02-26 07:32:22 2021-08-27 17:31:27 2019-02-26 07:32:22 article show Frankovic I. Kuhn M. 2235 Access to health care, medical progress and the emergence of the longevity gap: A general equilibrium analysis pub prog_pop D15; Health care spending; I11; I12; I24; Inequality; J11; Life-cycle model; Life-expectancy gap; Medical price inflation; Medical progress; O33; O41; Overlapping generations; Skill-biased earnings growth We study skill- and income-related differences in the access to health care as drivers of longevity inequality from a theoretical life-cycle as well as from a macroeconomic perspective. To do so, we develop an overlapping generations model populated by heterogeneous agents subject to endogenous mortality. We model two groups of individuals for whom differences in skills translate into differences in income and in the ability to use medical technology effectively in curbing mortality. We derive the skill- and age-specific individual demand for health care based on the value of life, the level of medical technology and the market prices. Calibrating the model to the development of the US economy and the longevity gap between the skilled and unskilled, we study the impact of rising effectiveness of medical care in improving individual health and examine how disparities in health care utilisation and mortality emerge as a consequence. In so doing, we explore the role of skill-biased earnings growth, skill-bias in the ability to access state-of-the art health care and to use it effectively, and skill-related differences in health insurance coverage. We pay attention to the macroeconomic feedback, especially to medical price inflation. Our findings indicate that skill-bias related to the effectiveness of health care explains a large part of the increase in the longevity with earnings-related differences in the utilisation of health care taking second place. Both channels tend to be reinforced by medical progress. 2019-02 published Elsevier 10.1016/j.jeoa.2019.01.002 3124 public The Journal of the Economics of Ageing 14 e100188 TRUE 2212-828X FALSE no info:eu-repo/semantics/article