Abstract
The purpose of this article is to examine the effect of pharmaceutical expenditures on life expectancy for 21 OECD countries. An unbalanced panel data model is used to investigate the role of socio-economic, lifestyle and demographic factors as well as public and private pharmaceutical expenditures in determining life expectancy for six age–gender strata over the period 1985 to 2002. The empirical results show that pharmaceutical expenditure has a positive, but different effect on life expectancy for females and males with various ages.
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