Associate researcher of IAR Lei Ning’s paper “Why do Americans spend so much more on health care than Europeans?” (coauthored with Prof. Hui He, senior economist of International Monetary Fund, and Prof. Kevin X.D. Huang from Vanderbilt University), recently has one paper published online by International Economic Review, a leading journal in economics in the world and a tier 1 international journal on SUFE’s list.
Abstract: Empirical evidence shows that both leisure and medical care are important in maintaining health and taxation may affect the allocation of these two inputs. We highlight this point using an analytical setting whose implications conform to micro- and macro-data. We then quantify these implications using a life-cycle overlapping generations model where taxation and relative health-care price are key determinants of the composition of the two inputs in the endogenous accumulation of health capital. We find that differences in taxation alone explain 44.7% of U.S.-EU differences in health expenditure-GDP ratio and more than 70% of their differences in time allocation.
Lei Ning received his Ph.D. from Shanghai University of Finance and Economics and now serves as an associate researcher at Institute for Advanced Research. His research interest includes macroeconomics, household finance, China’s economy, etc. He has papers published in the Macroeconomic Dynamics, Frontiers of Economics in China, etc. He is also the host of a NSFC Youth project.