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Is Health Care Expenditure Really a Luxury Good? Re-assessment and New Evidence Based on OECD Data

Author

Listed:
  • Vincenzo Atella

    () (Università di Roma "Tor Vergata")

  • Giorgia Marini

    () (University of York)

Abstract

The aim of the paper is to present new evidence on the relationship between income and health expenditure allowing for (i) substitution and complementary relationships between private and public health expenditure, (ii) presence of structural breaks in the dependent variables, and (iii) presence of heterogeneous institutional setting (country-specific health systems). Our results show that income elasticity is quite sensitive to the inclusion of technology variables and to health system heterogeneity, that complementary and substitution relationships play an important role in determining public and private health expenditure and, finally, that public and private health expenditures are both related with a cyclical indicator of economic activity.

Suggested Citation

  • Vincenzo Atella & Giorgia Marini, 2007. "Is Health Care Expenditure Really a Luxury Good? Re-assessment and New Evidence Based on OECD Data," Rivista di Politica Economica, SIPI Spa, vol. 97(2), pages 87-120, March-Apr.
  • Handle: RePEc:rpo:ripoec:v:97:y:2007:i:2:p:87-120
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    References listed on IDEAS

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    1. Julia K. Thomas, 2002. "Is Lumpy Investment Relevant for the Business Cycle?," Journal of Political Economy, University of Chicago Press, vol. 110(3), pages 508-534, June.
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    Citations

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    Cited by:

    1. Stolpe, Michael, 2003. "Ressourcen und Ergebnisse der globalen Gesundheitsökonomie: Einführung und Überblick," Kiel Working Papers 1177, Kiel Institute for the World Economy (IfW).
    2. Blázquez-Fernández, Carla & Cantarero-Prieto, David & Pascual-Sáez, Marta, 2014. "Experiencia comparada europea y el reto de la descentralización sanitaria/Comparative European Experience and the Decentralization Health Challenge," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 32, pages 841-860, Mayo.
    3. David Prieto & Santiago Lago-Peñas, 2012. "Decomposing the determinants of health care expenditure: the case of Spain," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 13(1), pages 19-27, February.
    4. Nilgun Yavuz & Veli Yilanci & Zehra Ozturk, 2013. "Is health care a luxury or a necessity or both? Evidence from Turkey," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 14(1), pages 5-10, February.

    More about this item

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • I10 - Health, Education, and Welfare - - Health - - - General
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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