Ageing, health, and health care
The population in the developed world has experienced a significant increase in life expectancy over the last 50 years. Simultaneously, while the onset of comorbidities has been deferred to older age groups, health-care expenditure has grown dramatically, primarily owing to the advancement of medical technology and the expansion of individual income levels, along with population ageing in the wake of increased longevity. However, the contribution of population ageing to health expenditure growth is subject to some theoretical and empirical scrutiny. This paper takes the question of ageing and health and health care to the data to evaluate the net impact of ageing. We focus on two main questions, namely the welfare valuation of longevity improvements for various OECD countries, along with the 'red herring' hypothesis which suggests that population ageing has a small and almost negligible impact on health-care expenditure. Our estimates lead us to suggest an average gain in longevity of 4.5 years since 1980, corresponding to about 13.5 per cent of lifetime income of a 20-year-old in 2000. Furthermore, we confirm a weak red-herring claim, that is, that population ageing accounts for only a 0.5 per cent annual growth rate of health-care expenditure. Finally, we find that the rise in longevity leads to a further demand for life-prolonging medical care. Copyright 2010, Oxford University Press.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
When requesting a correction, please mention this item's handle: RePEc:oup:oxford:v:26:y:2010:i:4:p:674-690. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press)or (Christopher F. Baum)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.