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Health Spending in Japan: Macro-Fiscal Implications and Reform Options

Author

Listed:
  • Mr. Masahiro Nozaki
  • Kenichiro Kashiwase
  • Ikuo Saito

Abstract

Health spending has risen rapidly in Japan. We find two-thirds of the spending increase over 1990–2011 resulted from ageing, and the rest from excess cost growth. The spending level will rise further: ageing alone will raise it by 3½ percentage points of GDP over 2010–30, and excess cost growth at the rate observed over 1990–2011 will lead to an additional increase of 2–3 percentage points of GDP. This will require a sizable increase in government transfers. Japan can introduce micro- and macro-reforms to contain health spending, and financing options should be designed to enhance equity.

Suggested Citation

  • Mr. Masahiro Nozaki & Kenichiro Kashiwase & Ikuo Saito, 2014. "Health Spending in Japan: Macro-Fiscal Implications and Reform Options," IMF Working Papers 2014/142, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2014/142
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    References listed on IDEAS

    as
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    4. Kenichiro Kashiwase & Mr. Masahiro Nozaki & Kiichi Tokuoka, 2012. "Pension Reforms in Japan," IMF Working Papers 2012/285, International Monetary Fund.
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    Cited by:

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    2. Randall S. Jones & Kohei Fukawa, 2015. "Achieving Fiscal Consolidation while Promoting Social Cohesion in Japan," OECD Economics Department Working Papers 1262, OECD Publishing.
    3. Brieuc Monfort, 2015. "Can Increased Public Expenditure Efficiency Contribute to the Consolidation of Public Finances in Japan?," Working Papers halshs-01548620, HAL.
    4. Heller, Peter S., 2016. "The challenge of an aged and shrinking population: Lessons to be drawn from Japan’s experience," The Journal of the Economics of Ageing, Elsevier, vol. 8(C), pages 85-93.

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