Paper Status Tracking

Journals by Title

Journals by Subject

Contact us

	[email protected]
	3275638434

	Paper Publishing WeChat

Useful Links

Creative Commons Attribution-NonCommercial 4.0 International License

Article

Open Access

Factors Determining Health Expenditure in the Asian and the OECD Countries

Author(s)

Paitoon Kraipornsak

Full-Text PDF Download XML 1334 Views

DOI:10.17265/2328-7144/2017.05.003

Affiliation(s)

Chulalongkorn University, Bangkok, Thailand

ABSTRACT

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.

KEYWORDS

health expenditure, rising trend of health expenditure, Asian countries, OECD countries, country fixed effect, time fixed effect, income elasticity, necessary service

Cite this paper

Economics World, Sep.-Oct. 2017, Vol. 5, No. 5, 407-417 doi: 10.17265/2328-7144/2017.05.003

References

Atella, V., & Marini, G. (2006). Is health care expenditure really a luxury good? Re-assessment and new evidence based on OECD data. Retrieved from http://ssrn.com/abstract=383004

Baltagi, B. H., & Moscone, F. (2010). Health care expenditure and income in the OECD reconsidered: Evidence from panel data. Center for Policy Research, 46. Retrieved from http://surface.syr.edu/cpr/46

Bloomberg Business News. (2016). Retrieved from http://www.bloomberg.com/bw/stories/2009-07-28/health-care-in-crisis-overmedicating-americabusinessweek-business-news-stock-market-and-financial-advice

Canadian Institute for Health Information. (2015). National health expenditure trends, 1975 to 2015. Retrieved from www.chi.ca/nhex

Dybezak, K., & Przywara, B. (2010). The role of technology in health care expenditure in the EU. Economic Papers. Directorate-General for Economic and Financial Affairs. European Commission.

Gerdtham, U. G., Sogaard, J., Andersson, F., & Jonsson, B. (1992). An econometric analysis of health care expenditure: A cross-section study of the OECD countries. Journal of Health Economics, 11, 63-84.

Hitiris, T., & Posnett, J. (1992). The determinants and effects of health expenditure in developed countries. Journal of Health Economics, 11, 173-181.

Hosoya, K. (2014). Determinants of health expenditures: Stylized facts and a new signal. Modern Economy, 5, 1171-1180. Retrieved from http://dx.doi.org/10.4236/me.2014.513109

Ke, X., Saksena, P., & Holly, A. (2011). The determinants of health expenditure: A country-level panel data analysis. World Health Organization Working Paper of the Results for Development Institute (R4D). Retrieved from http://www.resultsfordevelopment.org

Lorenzoni, L., Belloni, A., & Sassi, F. (2014). Health-care expenditure and health policy in the USA versus other high-spending OECD countries. The Lancet, 384, 83-92.

Murray, C. J. L., Govindaraj, R., & Musgrove, P. (1994). National health expenditures: A global analysis. Bulletin of the World Health Organization, 72, 623-637.

Newhouse, J. P. (1977). Medical care expenditure: A cross-national survey. Journal of Human Resources, 12, 115-125.

USA Fact Sheet. (2016). Retrieved from http://www.cms.govresearch-statistics-data-and-systemsstatistics-trends-and-reportsnationalhealthexpenddatadownloadshighlights.pdf