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A Comparison of the USA Health Care Effort with other OECD Countries[/FONT]
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EDUARD GRACIA [/FONT]
[FONT=ARIAL, HELVETICA]University of Barcelona[/FONT]
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JOAN GIL [/FONT]
[FONT=ARIAL, HELVETICA]University of Barcelona - Department of Economic Theory [/FONT]
[FONT=ARIAL, HELVETICA]Hacienda Publica Espanola, Vol. 161, No. 2, 2002, Instituto de Estudios Fiscales, [/FONT]
[FONT=ARIAL, HELVETICA]Abstract: [/FONT]
[FONT=ARIAL, HELVETICA]We use a sample of OECD countries in order to better understand why the US health care expenditure as a percentage of its Gross Domestic Product ("health care effort") is so far above any other. To this end we employ a descriptive cross-country methodology based partially on econometric estimations, synthetic indicators and the Lerner's formula of market power, that allows us to dismiss as explanatory variables all those factors that were not differential across the sample.
We advance the exploratory hypothesis that the availability of a universal public health coverage would increase the price elasticity of demand and thus would reduce the control of prices by the suppliers. [/FONT]