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The Sustainability of European Health Care Systems: Beyond Income and Ageing

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  • Pammolli, Fabio
  • Riccaboni, Massimo
  • Magazzini, Laura

Abstract

During the last thirty years health care expenditure (HCE) has been growing much more rapidly than GDP in all OECD countries. Against this background, we look at the determinants of HCE growth in Europe, explicitly taking into account the role of income, ageing population, life habits, technological progress, as well as institutional and budgetary variables. Our results confirm that the current trend of increasing HCE is rooted in a set of differentiated factors. Income levels lead to higher HCE, and the magnitude of the estimated elasticity poses serious concerns about long-term sustainability of current trends. All in all, HCE growth appears to be driven by structural factors that cannot be easily compressed if not through rationing. The key challenge for many European Governments seems to be the design of pluralistic systems, where a well-balanced mix of public and private financing can realize a balance between sustainability and access.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 16026.

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Date of creation: 24 Oct 2008
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Handle: RePEc:pra:mprapa:16026

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Keywords: health care expenditure; sustainability; ageing population; income elasticity; welfare;

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References

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Citations

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Cited by:
  1. Fabio Pammolli & Nicola Carmine Salerno, 2011. "Le differenze regionali nella governance della spesa sanitaria - SaniRegio-2011," Working Papers 02-2011, Competitività Regole Mecati (CERM).
  2. Allen, Nicola & Pichler, Franz & Wang, Tina & Patel, Sundip & Salek, Sam, 2013. "Development of archetypes for non-ranking classification and comparison of European National Health Technology Assessment systems," Health Policy, Elsevier, vol. 113(3), pages 305-312.
  3. Renuga Nagarajan & Aurora A.C. Teixeira & Sandra T. Silva, 2013. "The impact of population ageing on economic growth: an in-depth bibliometric analysis," FEP Working Papers 505, Universidade do Porto, Faculdade de Economia do Porto.
  4. Pammolli, Fabio & Salerno, Nicola, 2011. "Le differenze regionali nella governance della spesa sanitaria. La sanità alla sfide del federalismo: il modello SaniRegio di CeRM
    [Regional differences in the governance of health care expenditur
    ," MPRA Paper 36934, University Library of Munich, Germany.

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