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What drives health care expenditure? - Baumol's model of 'unbalanced growth' revisited
Journal of Health Economics, 05/22/08
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Hartwig J et al. - The main implication of Baumol's model in this context is that health care expenditure is driven by wage increases in excess of productivity growth. This hypothesis is tested empirically using data from a panel of 19 OECD countries. Our tests yield robust evidence in favor of Baumol's theory.
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