Alternative price indexes for medical care: Evidence from the MEPS survey

Show simple item record Aizcorbe, A en Bradley, B en Greenaway-McGrevy, Ryan en Herauf, B en Kane, R en Liebman, E en Pack, S en Rozental, L en 2017-09-10T22:29:14Z en 2011-02 en
dc.identifier.citation Bureau of Economic Analysis (BEA) working paper WP2011-01 Feb 2011 en
dc.identifier.uri en
dc.description.abstract Spending on medical care is a large and growing component of GDP. There are wellknown measurement problems that are estimated to overstate inflation and understate real growth for this sector by as much as 1-1/2 percentage points per year. Because of its size, this would translate into an overstatement of inflation for the overall economy of about ¼ percentage point with an equal understatement in real GDP growth. In this paper, we use data from the Medical Expenditure Panel Survey to obtain new, more comprehensive estimates for this bias and to explore a possible adjustment to existing official price indexes. The MEPS data show an upward bias to price growth in this sector of 1 percentage point, which translates into an overstatement of overall inflation of .2 percentage point and an understatement of GDP growth of the same amount. We also find that an adjustment recently used in Bradley et al provides a useful approximation to the indexes advocated by health economists. en
dc.publisher BEA en
dc.relation.ispartofseries Bureau of Economic Analysis (BEA) working paper en
dc.rights Items in ResearchSpace are protected by copyright, with all rights reserved, unless otherwise indicated. Previously published items are made available in accordance with the copyright policy of the publisher. en
dc.rights.uri en
dc.title Alternative price indexes for medical care: Evidence from the MEPS survey en
dc.type Report en
dc.rights.holder Copyright: BEA en en Wachington, DC en
dc.rights.accessrights en
pubs.subtype Working Paper en
pubs.elements-id 633145 en Business and Economics en Economics en
pubs.number WP2011-01 en
pubs.record-created-at-source-date 2017-06-28 en

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