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Examining the relationship of healthcare expenditures and socio-economic factors with population health in Russia

Author

Listed:
  • Tatiana Kossova

    (HSE University)

  • Elena Kossova

    (HSE University)

  • Maria Sheluntcova

    (HSE University)

Abstract

The article follows the Grossman concept of investment in health and describes possibilities to increase human capital by addressing determinants of health. We aim to estimate the effect of healthcare expenditures and alcohol consumption on the life expectancy of men and women in Russia. Data sources are the Federal State Statistics Service of Russia and regional laws on the execution of the budgets of regional health insurance funds from 2005 to 2022. We estimate a linear regression model with fixed effects. Estimation results show that there is a significant reserve for improving health and increasing life expectancy associated with the formation of a healthy lifestyle. A 1% increase in absolute alcohol consumption at an annual level reduces the life expectancy of men by 0.035% or 8 days, and the life expectancy of women by 0.019% or 5 days, other things being equal. We show on macrodata that the effect of lifestyle factors on life expectancy is almost two times higher than the effect of healthcare expenditures in Russia. However, the effect of health system resources on life expectancy is stronger than the effect of healthcare expenditures and lifestyles. Our findings inform decision-makers responsible for initiatives aimed at improving public health.

Suggested Citation

  • Tatiana Kossova & Elena Kossova & Maria Sheluntcova, 2024. "Examining the relationship of healthcare expenditures and socio-economic factors with population health in Russia," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 71(4), pages 831-845, December.
    • Handle: RePEc:spr:inrvec:v:71:y:2024:i:4:d:10.1007_s12232-024-00469-4
    DOI: 10.1007/s12232-024-00469-4
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    References listed on IDEAS

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    1. Carla Blazquez-Fernández & David Cantarero-Prieto & Marta Pascual-Saez, 2017. "Health expenditure and socio-economic determinants of life expectancy in the OECD Asia/Pacific area countries," Applied Economics Letters, Taylor & Francis Journals, vol. 24(3), pages 167-169, February.
    2. Halicioglu, Ferda, 2011. "Modeling life expectancy in Turkey," Economic Modelling, Elsevier, vol. 28(5), pages 2075-2082, September.
    3. Grossman, Michael, 1972. "On the Concept of Health Capital and the Demand for Health," Journal of Political Economy, University of Chicago Press, vol. 80(2), pages 223-255, March-Apr.
    4. Pierre‐Yves Crémieux & Pierre Ouellette & Caroline Pilon, 1999. "Health care spending as determinants of health outcomes," Health Economics, John Wiley & Sons, Ltd., vol. 8(7), pages 627-639, November.
    5. Liang, Li-Lin & Tussing, A. Dale, 2019. "The cyclicality of government health expenditure and its effects on population health," Health Policy, Elsevier, vol. 123(1), pages 96-103.
    6. John Nixon & Philippe Ulmann, 2006. "The relationship between health care expenditure and health outcomes," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 7(1), pages 7-18, March.
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    Keywords

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    JEL classification:

    • 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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