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Pharmaceutical expenditure, total health-care expenditure and GDP

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  • Jes�s Clemente

    (Department of Economic Analysis, University of Zaragoza, Zaragoza, Spain)

  • Carmen Marcuello

    (Department of Business Organisation, University of Zaragoza, Zaragoza, Spain)

  • Antonio Monta�és

    (Department of Economic Analysis, University of Zaragoza, Zaragoza, Spain)

Abstract

This paper analyses the evolution of pharmaceutical expenditure with respect to GDP for a group of the most important OECD economies. We find that this relationship is not stable across the sample considered (1960-2003), and heterogeneity is found in the temporal evolution of the variables and across countries. Furthermore, we can see differences in the income elasticity estimation when we disaggregate pharmaceutical expenditure into its private and government components or when the total health-care expenditure (Total HCE) is disaggregated into its pharmaceutical and non-pharmaceutical components. We conclude that the changes in the elasticity of pharmaceutical expenditure and in the Total HCE elasticity are due to the private component and the pharmaceutical expenditure behaviour, respectively. Copyright © 2007 John Wiley & Sons, Ltd.

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Bibliographic Info

Article provided by John Wiley & Sons, Ltd. in its journal Health Economics.

Volume (Year): 17 (2008)
Issue (Month): 10 ()
Pages: 1187-1206

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Handle: RePEc:wly:hlthec:v:17:y:2008:i:10:p:1187-1206

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Web page: http://www3.interscience.wiley.com/cgi-bin/jhome/5749

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References

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Cited by:
  1. Felipa de Mello-Sampayo & Sofia de Sousa Vale, 2012. "Financing Health Care Expenditure in the OECD Countries: Evidence from a Heterogeneous, Cross-Sectionally Dependent Panel," Working Papers Department of Economics, ISEG - School of Economics and Management, Department of Economics, University of Lisbon 2012/34, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
  2. Fiorio, Carlo V. & Siciliani, Luigi, 2010. "Co-payments and the demand for pharmaceuticals: Evidence from Italy," Economic Modelling, Elsevier, Elsevier, vol. 27(4), pages 835-841, July.
  3. Vivas, David & Guadalajara, Natividad & Barrachina, Isabel & Trillo, José-Luis & Usó, Ruth & de-la-Poza, Elena, 2011. "Explaining primary healthcare pharmacy expenditure using classification of medications for chronic conditions," Health Policy, Elsevier, Elsevier, vol. 103(1), pages 9-15.
  4. Jorgen Lauridsen & Mariluz Sánchez & Mickael Bech, 2010. "Public pharmaceutical expenditure: identification of spatial effects," Journal of Geographical Systems, Springer, Springer, vol. 12(2), pages 175-188, June.
  5. Lagravinese, Raffaele & Paradiso, Massimo, 2012. "Corruption and health expenditure in Italy," MPRA Paper 43215, University Library of Munich, Germany.
  6. Lambrelli D & O’Donnell O, 2009. "Why Does the Utilization of Pharmaceuticals Vary So Much Across Europe? Evidence from Micro Data on Older Europeans," Health, Econometrics and Data Group (HEDG) Working Papers, HEDG, c/o Department of Economics, University of York 09/06, HEDG, c/o Department of Economics, University of York.

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