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Bureaucratisation and the growth of health care expenditures in Europe

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Author Info
J. ALBRECHT ()
M. NEYT ()
T. VERBEKE ()

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Abstract

The public choice literature suggests that bureaucrats might join forces with specific pressure and industrial groups which advocate an expansion of health care activities. As a result, the ongoing process of bureaucratisation can be a driving force behind the overproduction of health care services. In addition, Michel Foucault was the first to depict medicalisation and normalisation as processes part of a broader institutional infrastructure set up to control individuals. Both processes require a strong bureaucracy, established by the ruling elites. For our empirical analysis, the share of government employment in total employment has been used as a proxy for bureaucracy. Our results show that the process of bureaucratisation has a very significant and positive influence on national health care expenditures per capita in 20 European countries. Together with the evolution of per capita income, we can conclude that the ongoing bureaucratisation is one of the driving forces behind the rise of health care expenditures in Europe. A similar conclusion holds for the research intensity of the country. However, the combination of a high level of bureaucratisation and a high research intensity results in lowering per capita health expenditures. Our results furthermore confirm that the ageing of the population is consistently not significant once bureaucratisation is included in the analysis.

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Paper provided by Ghent University, Faculty of Economics and Business Administration in its series Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium with number 05/335.

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Length: 25 pages
Date of creation: Oct 2005
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Handle: RePEc:rug:rugwps:05/335

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  1. G. Lanine & R. Vander Vennet, 2005. "Failure prediction in the Russian bank sector with logit and trait recognition models," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 05/329, Ghent University, Faculty of Economics and Business Administration. [Downloadable!]
  2. W. Buckinx & G. Verstraeten & D. Van Den Poel, 2005. "Predicting Customer Loyalty Using The Internal Transactional Database," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 05/324, Ghent University, Faculty of Economics and Business Administration. [Downloadable!]
  3. M. Vanhoucke & S. Vandevoorde, 2005. "A simulation and evaluation of earned value metrics to forecast the project duration," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 05/317, Ghent University, Faculty of Economics and Business Administration. [Downloadable!]
  4. W. Bruggeman & P. Everaert & S. R. Anderson & Y. Levant, 2005. "Modeling Logistics Costs using Time-Driven ABC: A Case in a Distribution Company," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 05/332, Ghent University, Faculty of Economics and Business Administration. [Downloadable!]
  5. W. Buckinx & D. Van Den Poel, 2005. "Assessing and exploiting the profit function by modeling the net impact of targeted marketing," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 05/330, Ghent University, Faculty of Economics and Business Administration. [Downloadable!]
  6. G. Poels & A. Maes & F. Gailly, 2005. "User Attitudes towards Pattern-Based Enterprise Information Models: A Replicated Experiment with REA Diagrams," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 05/315, Ghent University, Faculty of Economics and Business Administration. [Downloadable!]
  7. M. Buelens & D. Bouckenooghe & D. De Clercq & A. Willem, 2005. "An Assessment of Validity in Small Business and Entrepreneurship Research," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 05/328, Ghent University, Faculty of Economics and Business Administration. [Downloadable!]
  8. V. Vansteeger, 2005. "The current state of accounting harmonization: impediments to and benefits from harmonization," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 05/322, Ghent University, Faculty of Economics and Business Administration. [Downloadable!]
  9. Claeys, Sophie & Lanine, Gleb & Schoors, Koen, 2005. "Bank supervision Russian style: Rules versus enforcement and tacit objectives," BOFIT Discussion Papers 10/2005, Bank of Finland, Institute for Economies in Transition. [Downloadable!]
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  10. G. Poels & F. Gailly & A. Maes & R. Paemeleire, 2005. "Object Class or Association Class? Testing the User Effect on Cardinality Interpretation," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 05/323, Ghent University, Faculty of Economics and Business Administration. [Downloadable!]
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  12. S. CLAEYS & G. LANINE & K. SCHOORs, 2005. "Bank Supervision Russian Style: Rules vs Enforcement and Tacit Objectives," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 05/307, Ghent University, Faculty of Economics and Business Administration. [Downloadable!]
  13. Vandevoorde, S. & Vanhoucke, M., 2005. "A comparison of different project duration forecasting methods using earned value metrics," Vlerick Leuven Gent Management School Working Paper Series 2005-16, Vlerick Leuven Gent Management School. [Downloadable!]
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  15. Knockaert, M. & Lockett, A. & Clarysse, B. & Wright, M., 2005. "Do human capital and fund characteristics drive follow-up behaviour of early stage high tech vcs?," Vlerick Leuven Gent Management School Working Paper Series 2005-20, Vlerick Leuven Gent Management School. [Downloadable!]
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  16. I. Vermeir & M. Geuens, 2005. "Need for Closure and Youngsters’ Leisure Time Preferences," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 05/318, Ghent University, Faculty of Economics and Business Administration. [Downloadable!]
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  18. P. Windels & J. Christiaens, 2005. "Management Reform in Flemish Local Authorities: Testing the Institutional Framework," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 05/331, Ghent University, Faculty of Economics and Business Administration. [Downloadable!]
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  21. L. Pozzi, 2005. "Income uncertainty and aggregate consumption," Research series 200511-2, National Bank of Belgium. [Downloadable!]
  22. L. Pozzi, 2005. "Income Uncertainty and Aggregate Consumption," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 05/334, Ghent University, Faculty of Economics and Business Administration. [Downloadable!]
  23. E. Labro & M. Vanhoucke, 2005. "A simulation analysis of interactions between errors in costing system design," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 05/333, Ghent University, Faculty of Economics and Business Administration. [Downloadable!]
  24. A. Karas & K. Schoors, 2005. "Heracles or Sisyphus? Finding, cleaning and reconstructing a database of Russian banks," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 05/327, Ghent University, Faculty of Economics and Business Administration. [Downloadable!]
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. J. Lepoutre & N. A. Dentchev & A. Heene, 2005. "Dealing With Uncertainties When Governing CSR Policies," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 05/337, Ghent University, Faculty of Economics and Business Administration. [Downloadable!]
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  2. M. Dossche & G. Everaert, 2005. "Measuring inflation persistence: a structural time series approach," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 05/340, Ghent University, Faculty of Economics and Business Administration. [Downloadable!]
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  3. M. Vanhoucke & B. Maenhout, 2005. "Characterisation and Generation of Nurse Scheduling Problem Instances," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 05/339, Ghent University, Faculty of Economics and Business Administration. [Downloadable!]
  4. B. Maenhout & M. Vanhoucke, 2005. "New Computational Results for the Nurse Scheduling Problem: A Scatter Search Algorithm," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 05/341, Ghent University, Faculty of Economics and Business Administration. [Downloadable!]
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  5. H. Ooghe & C. Spaenjers & P. Vandermoere, 2005. "Business failure prediction: simple-intuitive models versus statistical models," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 05/338, Ghent University, Faculty of Economics and Business Administration. [Downloadable!]
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