This paper argues that the standard, normative, static economic model brings out an element of truth that a proportion of medical expenditure in both the U.S. and Japan is inefficient. Yet the static analysis leads to the misleading inference that the rate of growth is seriously distorted. Discussing welfare loss in a dynamic context is very essential.
(Summer 1993)
Japan and the World Economy
1993
http://www.sciencedirect.com/science/article/pii/092214259390017X