The Effect of Health Care Cost Growth on the U.S. Economy. 4. Empirical Analysis


This section analyzes how health care cost growth affects the economy using available secondary data from a variety of sources. The quantitative analysis described below examines effects on three sectors: aggregate economic indicators, industries, and state governments. The analyses involving aggregate economic indicators and state government finances are carried out at the state-year level, while the analysis on industries is at the industry-year level. Typically, data from multiple sources were combined to carry out each of these analyses. The data were merged at the state-year or industry-year level depending on the particular analysis. The data sources along with descriptions of the variables used in the various analyses are provided in Appendix 2 at the end of this report.

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