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 language | English |
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Journal | The Journal of the Economics of Ageing |
Early online date | 26 Sep 2018 |
DOIs | |
Publication status | Early 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