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Aging Risk and Health Care Expenditure in Korea

Author

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  • Byongho Tchoe

    (Health Insurance Review & Assessment Service, Seocho-gu, Seocho-3 dong, Seoul 137-927, Korea)

  • Sang-Ho Nam

    (Korea Institute for Health and Social Affairs, Eunpyong-gu, Bulkwang-dong, Seoul 122-705, Korea)

Abstract

This paper analyzes the impact of population aging on health care expenditures in Korea. Examination of the age-expenditure profile reveals that health care resources are allocated more for the older cohort of population over time, suggesting significant growth of health care expenditures due to population aging. We contend, however, that population aging is considered as a parameter rather than an independent variable to explain rising health care expenditures. This paper shows that population aging is not found to be a significant determinant of health care expenditures according to the econometric analysis using OECD health data and time-series data for Korea. Using the components decomposition method, which measures the contribution of each component of health care expenditure, we estimate that population aging contributes only less than 10 percent.

Suggested Citation

  • Byongho Tchoe & Sang-Ho Nam, 2010. "Aging Risk and Health Care Expenditure in Korea," IJERPH, MDPI, vol. 7(8), pages 1-20, August.
    • Handle: RePEc:gam:jijerp:v:7:y:2010:i:8:p:3235-3254:d:9335
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    References listed on IDEAS

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