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Convergence and determinants of health expenditures in OECD countries.


ABSTRACT: This study examines the trend and determinants of health expenditures in OECD countries over the 1975-2004 period. Based on recent developments in the economic growth literature we propose and test the hypothesis that health care expenditures in countries of similar economic development level may converge. We hypothesise that the main drivers for growth in health care costs include: aging population, technological progress and health insurance. The results reveal no evidence that health expenditures among OECD countries converge. Nevertheless, there is evidence of convergence among three sub-groups of countries. We found that the main driver of health expenditure is technological progress. Our results also suggest that health care is a (national) necessity, not a luxury good as some other studies in this field have found.

SUBMITTER: Nghiem SH 

PROVIDER: S-EPMC5560333 | biostudies-other | 2017 Aug

REPOSITORIES: biostudies-other

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Convergence and determinants of health expenditures in OECD countries.

Nghiem Son Hong SH   Connelly Luke Brian LB  

Health economics review 20170817 1


This study examines the trend and determinants of health expenditures in OECD countries over the 1975-2004 period. Based on recent developments in the economic growth literature we propose and test the hypothesis that health care expenditures in countries of similar economic development level may converge. We hypothesise that the main drivers for growth in health care costs include: aging population, technological progress and health insurance. The results reveal no evidence that health expendit  ...[more]

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2020-07-13 | GSE124294 | GEO