Health Care Expenditure and Income in the OECD Reconsidered: Evidence from Panel Data

Baltagi, Badi H.; Moscone, Francesco

doi:10.2139/ssrn.1807230

Cited by 119 publications

(159 citation statements)

References 46 publications

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“…Hitiris and Posnett (1992) however found income elasticity of health care close to one by controlling unobserved heterogeneity by introduced country-specific effects. Baltagi and Moscone (2010), on the contrary, found an income elasticity to be smaller than one. Baltagi and Moscone used a panel of 20 OECD countries over the period of 1971-2004 to estimate the long run relationship between health expenditure and income.…”

Section: Literature Reviewmentioning

confidence: 86%

Factors Determining Health Expenditure in the Asian and the OECD Countries

Kraipornsak¹

2017

JEW

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It is widely recognized that developed countries have been spending more than developing countries on health care.Objective of the study is to examine determinants of health expenditure and what factors influence it. Fifteen Asian countries and 30 OECD countries were chosen to explore the difference of their health expenditure structures.Model of health expenditure per person was estimated to be dependent on market demand, market supply, and other exogenous factors. A model with country specific and time effects of health expenditure was used and estimated.The study found a negative but insignificant relationship between price and health expenditure and a positive and significant relationship between GDP and health expenditure. Urban population density as proxy of urbanization was found to induce the health expenditure in the OECD. Out-of-pocket payment was also found to induce health expenditure for both the Asian and the OECD countries. A net effect of improvement in the health status or a lower mortality rate and a higher life expectancy caused an increase in the health expenditure among the Asian countries studied but decreased health expenditure in the OECD countries. In terms of income elasticity, it was found to be smaller than one in both groups of the countries. Since the income has changed faster than the other factors, the net effect of changes of all factors over period of time will cause rising in health care expenditure. Finally, the model indicated that both the Asian and OECD countries will continue to have a rising health expenditure per person over a period of time.

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Section: Literature Reviewmentioning

confidence: 86%

Factors Determining Health Expenditure in the Asian and the OECD Countries

Kraipornsak¹

2017

JEW

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“…Estimates of income elasticities range from close to zero and below one (Di Matteo 2003;Baltagi and Moscone 2010;Freeman 2012) to higher than one (Ang 2010;Liu et al 2010), depending on the choice of test statistics, whether or not deterministic trends are included and/or structural breaks allowed for, the sample of countries, etc.…”

Section: Literature Reviewmentioning

confidence: 99%

The relationship between healthcare expenditure and disposable personal income in the US states: a fractional integration and cointegration analysis

et al. 2017

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This study examines the relationship between healthcare expenditure and disposable income in the 50 US states over the period 1966-2009 using fractional integration and cointegration techniques. The degree of integration and nonlinearity of both series are found to vary considerably across states, while the fractional cointegration analysis suggests that a long-run relationship exists between them in only 11 out of the 50 US states. The estimated long-run income elasticity of healthcare expenditure suggests that health care is a luxury good in these states. By contrast, the short-run elasticity obtained from the regressions in first differences is in the range (0, 1) for most US states, which suggests that health care is a necessity good instead. The implications of these results for health policy are also discussed.

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“…In the sense of Baltagi and Moscone [14], this reduction in the parameter took into account the effect of time reduces the dependence in cross section. However, it is noted that the addition of control variables leads to an increase in income elasticity values in the CAEMC (1.046) and the WAEMU (2.314).…”

Section: Income Elasticitymentioning

confidence: 99%

“…The WAEMU and CAEMC areas are made of fourteen (14) countries located in Sub-Saharan Africa: height (08) countries in the WAEMU (Benin, Burkina Faso, Côte d'Ivoire, Guinea-Bissau, Mali, Niger, Senegal and Togo), and six (06) in the CAEMU (Cameroon, Central African Republic, Chad, Congo, EquatorialGuinea and Gabon). However, those economic and monetary unions are shaken by recurrent sociopolitical instability that weakens their economy's fundamentals.…”

Section: Introductionmentioning

confidence: 99%

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Public Health Policies and Economic Growth: Experience of the WAEMU and the CAEMC Countries

Tiehi¹,

Konan²

2017

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Purpose of this study is to analyze the implications of public health policies on economic growth in Sub-Saharan African Countries. From the experience of quite two homogeneous Economic Areas, namely the CAEMC and the WAEMU, we will check up the following hypotheses: The trade-off between Public expenditures in health and Economic growth is positive (ii). The income elasticity in the WAEMU Area is higher than that of the CEMAC Zone. Our method is based on the Panel data technique to compare countries from the CAEMC Area and those from the WAEMU zone on the 1995-2013 periods. It leads to the two following outcomes: On one hand, there is a long run relationship between Government health expenditures and economic growth; on the other hand, the income elasticity in the WAEMU is higher.

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Health Care Expenditure and Income in the OECD Reconsidered: Evidence from Panel Data

Cited by 119 publications

References 46 publications

Factors Determining Health Expenditure in the Asian and the OECD Countries

Factors Determining Health Expenditure in the Asian and the OECD Countries

The relationship between healthcare expenditure and disposable personal income in the US states: a fractional integration and cointegration analysis

Public Health Policies and Economic Growth: Experience of the WAEMU and the CAEMC Countries

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