The Sustainability of European Health Care Systems: Beyond Income and Ageing
AbstractDuring 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 InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 16026.
Date of creation: 24 Oct 2008
Date of revision:
health care expenditure; sustainability; ageing population; income elasticity; welfare;
Other versions of this item:
- Fabio Pammolli & Massimo Riccaboni & Laura Magazzini, 2012. "The sustainability of European health care systems: beyond income and aging," The European Journal of Health Economics, Springer, vol. 13(5), pages 623-634, October.
- Fabio Pammolli & Massimo Riccaboni & Laura Magazzini, 2008. "The Sustainability of European Health Care Systems: Beyond Income and Ageing," Working Papers 52, University of Verona, Department of Economics.
- H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
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