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The determinants of health care expenditure in Australia

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  • James Ang

Abstract

The objective of this article is to examine the long-run relationship and short-run dynamics of the health care expenditure in Australia during the period 1960-2003. Consistent with the conventional findings, the income elasticity for health care is found to be greater than one, suggesting that health care is a luxury good in Australia. Demographic structure is found to exert a significant positive impact on health care expenditure. An increase in the accessibility to health care services is associated with higher per capita real health care expenditure. Finally, public funding of health care appears to have a contributory effect on the formation of health care expenditure in Australia.

Suggested Citation

  • James Ang, 2010. "The determinants of health care expenditure in Australia," Applied Economics Letters, Taylor & Francis Journals, vol. 17(7), pages 639-644.
  • Handle: RePEc:taf:apeclt:v:17:y:2010:i:7:p:639-644
    DOI: 10.1080/00036840802297868
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    Cited by:

    1. Guglielmo Maria Caporale & Juncal Cunado & Luis A. Gil - Alana & Rangan Gupta, 2015. "The Relationship between Healthcare expenditures and Disposable Personal Income in the US States: A Fractional Integration and Cointegration Analysis," Working Papers 201532, University of Pretoria, Department of Economics.
    2. Ekaterini Panopoulou & Theologos Pantelidis, 2012. "Convergence in per capita health expenditures and health outcomes in the OECD countries," Applied Economics, Taylor & Francis Journals, vol. 44(30), pages 3909-3920, October.
    3. repec:sgh:gosnar:y:2018:i:1:p:137-157 is not listed on IDEAS
    4. Vandersteegen, Tom & Marneffe, Wim & Cleemput, Irina & Vereeck, Lode, 2015. "The impact of no-fault compensation on health care expenditures: An empirical study of OECD countries," Health Policy, Elsevier, vol. 119(3), pages 367-374.
    5. 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.

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