Graduate Program

Economics

Degree Name

Master of Arts (MA)

Semester of Degree Completion

2006

Thesis Director

Linda Ghent

Thesis Committee Member

Hui Li

Thesis Committee Member

Alan Grant

Abstract

This study investigates the influence of obesity on rising health care expenditures in the United States, which helps us understand the rising health insurance premium rates. Health care expenditures are measured as a share of state gross domestic product. This measure is chosen because it allows me to take a look at not only the out-of-pocket costs but at all other sources of payment, which includes private health insurance. The estimated results suggest that obesity contributes to rising health care expenditures as a share of state gross domestic product. Overweight, heavy drinking, and age also have been found to have positive effect on health care expenditures. This suggests that Americans need to take a better care of their health in order to decrease the rising health care expenditures and the declining employment-based health insurance coverage.

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