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Generational Accounting in European Health Care Systems

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Abstract

Growing shares of health care sectors in national income in the OECD countries have been observed for decades. Rising demand for health care coupled with medical advances may generate a significant burden on public finance in the ageing Europe in the coming years. We explore European public health care systems from the perspective of intergenerational solidarity using the generational accounting method. The following countries have been selected as representatives of the European health care systems: the Czech Republic, Denmark, Estonia, France, Italy, the Netherlands, and the United Kingdom. We conclude that if the growth of demand for health care is to be satisfied and the ratio of taxation remains constant, significant debts in health care will be generated by the current generation. A worse situation was found in systems financed mainly through health insurance or income taxes and in countries with high current expenditure on health.

Suggested Citation

  • Kateøina Pavloková & David Prušvic, 2010. "Generational Accounting in European Health Care Systems," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 60(5), pages 378-399, December.
  • Handle: RePEc:fau:fauart:v:60:y:2010:i:5:p:378-399
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    Cited by:

    1. Mark Connolly & Oleksandr Topachevskyi & Baudouin Standaert & Omayra Ortega & Maarten Postma, 2012. "The Impact of Rotavirus Vaccination on Discounted Net Tax Revenue in Egypt," PharmacoEconomics, Springer, vol. 30(8), pages 681-695, August.

    More about this item

    Keywords

    health care financing; sustainability; generational accounts; population ageing;

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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