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Health Care Quality vs Health Care Quantity: A General Equilibrium Analysis

Chatterjee, Tonmoy and Gupta, Kausik (2014): Health Care Quality vs Health Care Quantity: A General Equilibrium Analysis.

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Abstract

This paper attempts to relate the issues of health care quality with international trade. For this purpose we have mixed both flavours of Heckscher-Ohlin-Samuelson and Neo- Heckscher-Ohlin frameworks and developed a hybrid type of trade theoretic general equilibrium model. In such a set up we have shown that a movement from a regime of international health capital immobility to a regime of international health capital mobility may lead to an expansion of the health quality exporting sector. Apart from quality aspect of health services, the quantity aspect of health care has been also considered in this study. Moreover, from that hybrid model we have illustrated that the sizes of health care and composite export sector expand, where as import sector of our small open economy contracts.

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