We evaluate the long-run sustainability of health spending growth. Under the criterion that non-health consumption does not fall, one percent excess cost growth appears to be an upper bound for the economy as a whole when the projection horizon extends over the century, although some groups...

[...]This paper presents theoretical and empirical analysis ofautomatic fiscal stabilizers. Using the modern theory of consumption behavior, we identify several channels throughwhich optimal reaction of household consumption plans toaggregate income shocks is tempered by these stabilizers....