Document Abstract
Published:
2009
International differences in longevity and health and their economic consequences
What reasons are behind the health gap between US and Europe?
There is a growing longevity gap between the US and Europe with no settled interpretation. This paper demonstrates that differences in observed disease prevalence can almost entirely account for this difference. The paper points that there is no “American-specific” effect on longevity, above and beyond differences in disease at age 50. Therefore, it suggests that addressing the health gap will likely erase the longevity gap.
However, the paper indicates that further research is needed into the cause of the gap in good health. In this sense, it notes that the expansion of the gap in longevity and health is coincided with relative increases in obesity among the US population. Moreover, it figures that near-elderly cohorts of Americans took up smoking at much higher rates than their European counterparts.
Equally important, the paper underlines that the gap in health and longevity has obvious private costs to the citizens suffering from disease. In this respect, it reveals that gradual transitions of US cohorts towards European levels could generate large fiscal benefits; in the long-run, medical expenditures may fall by $1.1 trillion on a present value basis.
Nevertheless, the paper states that it is not clear which policies could help reach this goal. Yet, looking back at the success of anti-smoking campaigns, the paper notices that changing behaviours is possible. Still, the costs of such policies will need to be weighted against the welfare and economic consequences which have been analysed in this paper.
However, the paper indicates that further research is needed into the cause of the gap in good health. In this sense, it notes that the expansion of the gap in longevity and health is coincided with relative increases in obesity among the US population. Moreover, it figures that near-elderly cohorts of Americans took up smoking at much higher rates than their European counterparts.
Equally important, the paper underlines that the gap in health and longevity has obvious private costs to the citizens suffering from disease. In this respect, it reveals that gradual transitions of US cohorts towards European levels could generate large fiscal benefits; in the long-run, medical expenditures may fall by $1.1 trillion on a present value basis.
Nevertheless, the paper states that it is not clear which policies could help reach this goal. Yet, looking back at the success of anti-smoking campaigns, the paper notices that changing behaviours is possible. Still, the costs of such policies will need to be weighted against the welfare and economic consequences which have been analysed in this paper.
