The Health of Nations

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Abstract
This chapter explores how measures of national income accounting might incorporate improvements in the health of a country's population. It discusses the theory of the measurement of national income, examines some of the shortcomings of traditional concepts, and proposes a new concept that can be used to incorporate improvements in health status in the U.S. The chapter argues that national income accounts would more accurately reflect changes in welfare if they properly measured the output of the health care sector.

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