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Is pharmaceutical expenditure related to the business cycles?

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  • Carla Blazquez-Fernández
  • David Cantarero-Prieto
  • Marta Pascual-Saez

Abstract

Recent research is focused on the study of health care expenditure and fiscal sustainability. In order to facilitate the understanding of this issue, we centre our interest on the Spanish pharmaceutical expenditure. Specifically, using data for the period 1995–2012, in the article we analyse if economic cycles affect pharmaceutical expenditures. Our results support that there is a positive relationship between pharmaceutical expenditure and economic development. Therefore, we conclude that pharmaceutical expenditures are pro cyclical over the last years.

Suggested Citation

  • Carla Blazquez-Fernández & David Cantarero-Prieto & Marta Pascual-Saez, 2016. "Is pharmaceutical expenditure related to the business cycles?," Applied Economics Letters, Taylor & Francis Journals, vol. 23(10), pages 705-707, July.
    • Handle: RePEc:taf:apeclt:v:23:y:2016:i:10:p:705-707
    DOI: 10.1080/13504851.2015.1102834
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