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An Unhealthy America: The Economic Burden of ... - Milken Institute

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<strong>An</strong> <strong>Unhealthy</strong> <strong>America</strong><strong>Milken</strong> <strong>Institute</strong>17. Calculations were also performed using a wage-based approach; when measured in wages, as opposed to GDP,the productivity loss totaled $464.0 billion for the year. Most analyses <strong>of</strong> the indirect impacts <strong>of</strong> chronic diseasebase their estimates on average wages. Wages are the most accurate measure for evaluating the value <strong>of</strong> lost workhours or productivity at the margin to an individual employee. But GDP per employee is more accurate forevaluating the marginal loss to the firm or to the economy overall.18. National Cancer <strong>Institute</strong>, “Cancer Trends Progress Report,” (2005).19. Department <strong>of</strong> Health and Human Services, “Diseases and Conditions.” See: http://www.hhs.gov/diseases/index.html (accessed September 13, 2007).20. Changes in the price level, or inflation.21. “Smoking 101 Fact Sheet,” <strong>America</strong>n Lung Association. See: http://www.lungusa.org/site/pp.asp?c=dvLUK9O0E&b=39853 (accessed May 3, 2007).22. <strong>The</strong> cumulative difference in lost productivity, using a wage-based method rather than a GDP-based method,totals $3.0 trillion.23. Roland Sturm et al., “Obesity and Disability: <strong>The</strong> Shape <strong>of</strong> Things to Come,” in RAND Research Highlights (RANDCorporation, 2007). Available at http://www.rand.org/pubs/research_briefs/RB9043-1/.24. New England Healthcare <strong>Institute</strong>, <strong>The</strong> Boston Paradox: Lots <strong>of</strong> Health Care, Not Enough HealthIndicators <strong>of</strong> Health, Health Care and Competitiveness in Greater Boston. (Boston: 2007).25. Gary Becker, “Human Capital and the Economy,” Proceedings <strong>of</strong> the <strong>America</strong>n Philosophical Society; 136, no. 1 (1992).26. Bloom, David E., David Canning, and Sevilla, Jaypee. “<strong>The</strong> Effect <strong>of</strong> Health on <strong>Economic</strong> Growth: A ProductionFunction Approach.” World Development, 2004; 32(1): 1–13. <strong>The</strong> productivity boost is consistent with establishedresults, but one must consider the limitations <strong>of</strong> applying the results to a market like the United States. See alsoGuillem López-Casasnovas, Berta Rivera, and Currais Luis, Health and <strong>Economic</strong> Growth: Findings and PolicyImplications. (Cambridge: <strong>The</strong> MIT Press, 2005).27. Some statistical projections use life expectancy at birth, but this is generally used to proxy a country’s healthand poverty, and seems less appropriate for a leading economy.28. We see from separate state cross-sectional regressions that a 1.0 percent increase in life expectancy at age 65is associated with a 1.8 percent increase in the percent <strong>of</strong> the adult population with a bachelor’s degree or above.29. Kevin Murphy and Robert Topel, “Diminishing Returns? <strong>The</strong> Costs and Benefits <strong>of</strong> Improving Health,” Perspectivesin Biology and Medicine 46, no. 3, Summer Supplement (2003).[ 36 ]

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