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Surveying Low-Cost Methods to Measure Lifespan and Healthspan in Caenorhabditis elegans
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Accounting for the Rise of Health Spending and Longevity.

Raquel Fonseca1, Pierre-Carl Michaud2, Titus Galama3

  • 1ESG-Universite du Quebec a Montreal & CIRANO.

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|March 8, 2021
PubMed
Summary

Technological progress drove half of US life expectancy gains from 1965-2005. Increased economic resources and better health insurance, not just medical advances, fueled rising health spending, with interactions amplifying the effect.

Keywords:
health spendinglife-cyclelongevitytechnological change

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Area of Science:

  • Health Economics
  • Demography
  • Econometrics

Background:

  • US health spending and life expectancy increased significantly between 1965 and 2005.
  • Factors influencing these trends include economic changes, insurance generosity, and technological progress.

Purpose of the Study:

  • To estimate a stochastic life-cycle model to identify the drivers of increased health spending and longevity in the US.
  • To quantify the contributions of various factors, including technological progress, economic resources, and health insurance, to these trends.

Main Methods:

  • Developed and estimated a stochastic life-cycle model incorporating endogenous health spending, asset accumulation, and retirement decisions.
  • Accounted for changes in taxes, transfers, Social Security, income, health insurance, smoking, obesity, and technological progress over the 1965-2005 period.

Main Results:

  • Technological progress accounted for approximately 50% of the increase in life expectancy.
  • Growth in economic resources and health insurance generosity were primary drivers of increased health spending, with medical technological progress playing a modest role.
  • Complementarity effects between different factors explained up to 26.3% of the rise in health spending.

Conclusions:

  • Technological advancements are crucial for longevity gains, while economic and insurance factors are key to health spending increases.
  • Interactions between economic resources, health insurance, and other factors significantly amplify health spending growth.
  • Changes in resources and health insurance provided substantial lifetime consumption value for individuals born in 1940.