The Economic Burden of Chronic Diseases: Estimates and Projections for China, Japan, and South Korea

David E. Bloom, Simiao Chen, Michael Kuhn, Mark E. McGovern, Les Oxley, Klaus Prettner

Research output: Contribution to journalArticlepeer-review

12 Citations (Scopus)
133 Downloads (Pure)

Abstract

We propose a novel framework to analyse the macroeconomic impact of non-communicable diseases. We incorporate measures of disease prevalence into a human capital augmented production function, which enables us to determine the economic costs of chronic health conditions in terms of foregone gross domestic product (GDP). Unlike previously adopted frameworks, this approach allows us to account for i) variations in human capital for workers in different age groups, ii) mortality and morbidity effects of non-communicable diseases, and iii) the treatment costs of diseases. We apply our methodology to China, Japan, and South Korea, and estimate the economic burden of chronic conditions in five domains (cardiovascular diseases, cancer, chronic respiratory diseases, diabetes, and mental health conditions). Overall, total losses associated with these diseases over the period 2010-2030 are $7.7 trillion for China (measured in real USD with the base year 2010), $3.5 trillion for Japan, and $1 trillion for South Korea.
Original languageEnglish
JournalThe Journal of the Economics of Ageing
Early online date26 Sep 2018
DOIs
Publication statusEarly online date - 26 Sep 2018

Keywords

  • Non-communicable Diseases
  • Human Capital
  • Health Interventions
  • Aggregate Output
  • Ageing
  • East Asia

ASJC Scopus subject areas

  • Economics and Econometrics
  • Public Health, Environmental and Occupational Health

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