Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/215726 
Year of Publication: 
2020
Citation: 
[Journal:] International Journal for Re-Views in Empirical Economics (IREE) [ISSN:] 2566-8269 [Volume:] 4 [Issue:] 2020-1 [Publisher:] ZBW – Leibniz Information Centre for Economics [Place:] Kiel, Hamburg [Year:] 2020 [Pages:] 1-10
Publisher: 
ZBW – Leibniz Information Centre for Economics, Kiel, Hamburg
Abstract: 
In his 2008 Journal of Health Economics paper, Jochen Hartwig claimed that Baumol's Cost Disease (BCD) theory could explain observed increases in health care expenditures in OECD countries. This paper replicates Hartwig's results and demonstrates that he tested the wrong hypothesis. When one tests the correct hypothesis, Hartwig's conclusions are not supported. Rather than providing evidence in favor of BCD, Hartwig's estimation procedures, when applied correctly, strongly reject BCD as an explanation for health expenditure increases for the OECD data he examined.
Subjects: 
Baumol's cost disease
Health care expenditures
Health care costs
OECD
Panel data
Replication study
JEL: 
I11
J30
E24
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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