Using a general equilibrium heterogeneous agent model featuring health production, we quantify the relative … contribution of price distortions in the health market, TFP and other health risks in explaining cross-country differences in … health expenditure (as a share of GDP) and health status. Estimated parameters reveal a substantial price wedge that explains …

primarily the symptom of real declines in the health of near-elderly Americans, relative to their European peers. In particular …, we use a microsimulation approach to project what US longevity would look like, if US health trends approximated those in … Europe. We find that differences in health can explain most of the growing gap in remaining life expectancy. In addition, we …