Does Ageing Call for a Reform of the Health Care Sector?
AbstractA popular view is that ageing populations increase health expenditure to GDP ratios because health expenditure correlates positively with age and because the concomitant shrinking of the labour force depresses GDP. The resulting increase in transfers from the young to the old then calls for a reform of health care policies. This article critically examines the arguments underlying this view. It gives credit to factors that counteract the expenditure effect, the effects upon health care market and labour market distortions and the effects upon intergenerational solidarity. Although important, these factors are found to have insufficient weight to invalidate the popular view. (JEL: H21, I10, J10) Copyright 2006, Oxford University Press.
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Bibliographic InfoArticle provided by CESifo in its journal CESifo Economic Studies.
Volume (Year): 52 (2006)
Issue (Month): 1 (March)
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Find related papers by JEL classification:
- H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
- I10 - Health, Education, and Welfare - - Health - - - General
- J10 - Labor and Demographic Economics - - Demographic Economics - - - General
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- Colombier, Carsten & Weber, Werner, 2009.
"Projecting health-care expenditure for Switzerland: further evidence against the 'red-herring' hypothesis,"
26712, University Library of Munich, Germany, revised Jun 2010.
- Colombier, Carsten & Weber, Werner, 2009. "Projecting health-care expenditure for Switzerland: further evidence against the 'red-herring' hypothesis," MPRA Paper 26747, University Library of Munich, Germany, revised Nov 2009.
- Ried, Walter, 2007. "On the relationship between aging, edical progress and age-specific health care expenditures," Wirtschaftswissenschaftliche Diskussionspapiere 08/2007, Ernst Moritz Arndt University of Greifswald, Faculty of Law and Economics.
- Casper van Ewijk & Nick Draper & Harry ter Rele & Ed Westerhout, 2006. "Ageing and the sustainability of Dutch public finances," CPB Special Publication 61, CPB Netherlands Bureau for Economic Policy Analysis.
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