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The determinants of health care expenditure in Australia

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  • James Ang

Abstract

The objective of this article is to examine the long-run relationship and short-run dynamics of the health care expenditure in Australia during the period 1960-2003. Consistent with the conventional findings, the income elasticity for health care is found to be greater than one, suggesting that health care is a luxury good in Australia. Demographic structure is found to exert a significant positive impact on health care expenditure. An increase in the accessibility to health care services is associated with higher per capita real health care expenditure. Finally, public funding of health care appears to have a contributory effect on the formation of health care expenditure in Australia.

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  • James Ang, 2010. "The determinants of health care expenditure in Australia," Applied Economics Letters, Taylor & Francis Journals, vol. 17(7), pages 639-644.
    • Handle: RePEc:taf:apeclt:v:17:y:2010:i:7:p:639-644
    DOI: 10.1080/00036840802297868
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    2. Xiaohui You & Albert A. Okunade, 2017. "Income and Technology as Drivers of Australian Healthcare Expenditures," Health Economics, John Wiley & Sons, Ltd., vol. 26(7), pages 853-862, July.
    3. Ekaterini Panopoulou & Theologos Pantelidis, 2012. "Convergence in per capita health expenditures and health outcomes in the OECD countries," Applied Economics, Taylor & Francis Journals, vol. 44(30), pages 3909-3920, October.
    4. Adeel Saleem & Ghulam Sarwar & Jahanzaib Sultan & Zulfiqar Ali, 2022. "Determinants of Public Healthcare Investment: Cointegration and Causality Evidence from Pakistan," Journal of Economic Impact, Science Impact Publishers, vol. 4(2), pages 01-13.
    5. Błażej Łyszczarz, 2018. "Determinanty wydatków na zdrowie w gospodarstwach domowych w Polsce," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 1, pages 137-157.
    6. Vandersteegen, Tom & Marneffe, Wim & Cleemput, Irina & Vereeck, Lode, 2015. "The impact of no-fault compensation on health care expenditures: An empirical study of OECD countries," Health Policy, Elsevier, vol. 119(3), pages 367-374.
    7. Nilgun Yavuz & Veli Yilanci & Zehra Ozturk, 2013. "Is health care a luxury or a necessity or both? Evidence from Turkey," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 14(1), pages 5-10, February.
    8. Veronika Kalouguina & Joël Wagner, 2020. "How Do Health, Care Services Consumption and Lifestyle Factors Affect the Choice of Health Insurance Plans in Switzerland?," Risks, MDPI, vol. 8(2), pages 1-21, April.
    9. Di Matteo, Livio & Cantarero-Prieto, David, 2018. "The Determinants of Public Health Expenditures: Comparing Canada and Spain," MPRA Paper 87800, University Library of Munich, Germany.
    10. Caravaggio, Nicola & Resce, Giuliano, 2023. "Enhancing Healthcare Cost Forecasting: A Machine Learning Model for Resource Allocation in Heterogeneous Regions," Economics & Statistics Discussion Papers esdp23090, University of Molise, Department of Economics.
    11. Muhammad Arshad Khan & Muhammad Iftikhar Ul Husnain, 2019. "Is health care a luxury or necessity good? Evidence from Asian countries," International Journal of Health Economics and Management, Springer, vol. 19(2), pages 213-233, June.

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