Healthcare Economist March 26, 2024
Jason Shafrin

How did health care prices change over the past 2 decades. That is the question a paper by Papanicolas (2024) aims to answer, comparing US prices to those from Australia, Canada, France, and the Netherlands between 2000 and 2020.

Before we get to the results, we first need to determine what types of price indices are out there? The authors cite three main types:

  1. Economy wide price indices: Examples include a GDP price index
  2. Price indices covering all goods and services consumed by households: Examples include the actual individual consumption (AIC) price index
  3. National health deflators. These are health-specific prices indices and are produced by a variety of government entities (e.g., in the US Center for Medicare and Medicaid...

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