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Working Paper 04-08 - Estimating private health expenditures within a dynamic consumption allocation model

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Author Info
Peter Willemé

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Abstract

This paper presents a model of Belgian household consumption, with a focus on private health expenditures. To do so, we have formulated and estimated an extension of the classic Almost Ideal Demand System. The original model has been modified by introducing a dynamic adjustment mechanism and by the inclusion of demographic variables. These were expected to capture shifts in consumption patterns related to the changing age composition of the population. The results confirm the expected effects: the ageing of the population is likely to increase the share of private health expenditures (and consumer durables) in the household budget over the coming decades.

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Publisher Info
Paper provided by Federal Planning Bureau, Belgium in its series Working Papers with number 0804.

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Date of creation: 18 Feb 2008
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Handle: RePEc:fpb:wpaper:0804

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Find related papers by JEL classification:
C8 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs
E24 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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