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Abstract

This paper uses register data on the prevalence and costs of health and social care services in the Finnish population to calibrate demand for health care services as an outcome of welfare maximization and public and private health and social care provision in a regional, dynamic CGE model of Finland. The approach can be easily incorporated in any CGE model that allows for some modularity particularly in the treatment of household demands. Our approach integrates register data on the age-, gender- and region-specific prevalences of social and health care measures to a dynamic, regional CGE model. The approach produces several new insights into the implications of an aging population on the care sectors and public finances.

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