Working Paper: NBER ID: w22669
Authors: Liran Einav; Amy Finkelstein; Atul Gupta
Abstract: We document four similarities between American human healthcare and American pet care: (i) rapid growth in spending as a share of GDP over the last two decades; (ii) strong income-spending gradient; (iii) rapid growth in the employment of healthcare providers; and (iv) similar propensity for high spending at the end of life. We speculate about possible implications of these similar patterns in two sectors that share many common features but differ markedly in institutional features, such as the prevalence of insurance and of public sector involvement.
Keywords: pet health care; human health care; healthcare spending; income elasticity
JEL Codes: H51; I1; I13
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Rapid growth in pet care spending (D12) | Rapid growth in human healthcare spending (H51) |
| Higher income (D31) | Increased propensity to spend on healthcare (H51) |
| Increased spending on healthcare (H51) | More healthcare provider jobs (I11) |
| End-of-life circumstances (J17) | Healthcare spending (H51) |