This paper seeks to determine the macro-economic impacts of changes in health care provision. The resource allocation issues have been explored in theory, by applying the Rybczynski theorem, and empirically, using a computable general equilibrium (CGE) model for the UK with a detailed health component. From the theory, changes in non-health outputs are shown to depend on factor-bias and scale effects, the net effects generally being indeterminate. From the applied model, a rise in the National Health Service (NHS) budget is shown to yield overall welfare gains, which fall by two-thirds assuming health care-specific factors. A nominally equivalent migration policy yields even higher welfare gains.

Computable general equilibrium, Eurasia, Europe, Health care, International migration, International trade theory, Labour markets, United Kingdom, Western Europe, health care, health impact, health policy, international migration, international trade, labor market, resource allocation, welfare provision,
Journal of Health Economics
Erasmus MC: University Medical Center Rotterdam

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