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Is Health Care Expenditure Really a Luxury Good? Re-assessment and New Evidence Based on OECD Data

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Author Info
Vincenzo Atella () (Università di Roma "Tor Vergata")
Giorgia Marini () (University of York)

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Abstract

The aim of the paper is to present new evidence on the relationship between income and health expenditure allowing for (i) substitution and complementary relationships between private and public health expenditure, (ii) presence of structural breaks in the dependent variables, and (iii) presence of heterogeneous institutional setting (country-specific health systems). Our results show that income elasticity is quite sensitive to the inclusion of technology variables and to health system heterogeneity, that complementary and substitution relationships play an important role in determining public and private health expenditure and, finally, that public and private health expenditures are both related with a cyclical indicator of economic activity.

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File URL: http://www.rivistapoliticaeconomica.it/2007/mar-apr/atella_marini.php
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Publisher Info
Article provided by SIPI Spa in its journal Rivista di Politica Economica.

Volume (Year): 97 (2007)
Issue (Month): 2 (March-April)
Pages: 87-120
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Handle: RePEc:rpo:ripoec:v:97:y:2007:i:2:p:87-120

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Find related papers by JEL classification:
C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Hypothesis Testing
C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data
I10 - Health, Education, and Welfare - - Health - - - General
I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

Cited by:
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  1. Michael Stolpe, 2003. "Ressourcen und Ergebnisse der globalen Gesundheitsökonomie, Einführung und Überblick," Kiel Working Papers 1177, Kiel Institute for the World Economy. [Downloadable!]
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This page was last updated on 2009-11-27.

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