The Effect of Health Care Cost Growth on the U.S. Economy. 4.3 Effect on State Government


Finally, state level data across several years are used to investigate how rising health care costs affect state government finances. As for the analysis involving aggregate economic indicators, the measure of health care cost is per capita health expenditure, and the specific outcomes examined are per capita state government expenditures on health and other sectors, total expenditures, and per capita state government debt. Details on the construction and sources of these variables are provided in the data appendix at the end of this document.

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