Abstract
This article further investigates the determinants of health expenditures by using aggregate data. Specifically, a panel data analysis of 25 OECD countries reveals that under several model specifications, the proxy for population ageing has no effect on health costs in accordance with recent findings. In contrast to this well-known result, an additional estimation conducted to check robustness revealed that the ageing variable becomes positive and significant. The significant effect may provide a new signal for a determinant of health expenditures. This result suggests that ageing is an important factor that cannot be ignored when considering variations in health expenditures.
Highlights
This article further investigates the determinants of health expenditures, which have been widely examined in econometric analyses of health care services
Some relatively recent analyses using aggregate data, including Barros [5], Gerdtham et al [6], and Herwartz and Theilen [7], have found negative or insignificant estimates for ageing variables, contrary to general predictions. These recent findings suggest that population ageing has no significant effect on variations in aggregate health expenditures
Our primary goal is to examine the relationship between ageing and health costs, we investigate the effects of other important variables including income level and proxies for the system of medical service
Summary
This article further investigates the determinants of health expenditures, which have been widely examined in econometric analyses of health care services. Some relatively recent analyses using aggregate (macro) data, including Barros [5], Gerdtham et al [6], and Herwartz and Theilen [7], have found negative or insignificant estimates for ageing variables, contrary to general predictions These recent findings suggest that population ageing has no significant effect on variations in aggregate health expenditures.. Our primary goal is to examine the relationship between ageing and health costs, we investigate the effects of other important variables including income level and proxies for the system of medical service This approach is the notable feature of the present study compared with the literature, where focus is placed upon long-run economic relationships among some major variables.
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