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On the determination of the US aggregate health care expenditure

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  • George Karatzas

Abstract

Per capita real health care expenditure is examined against three major groups of explanatory variables: economic, demographic, and health stock, and it is found that the three groups of variables have an impact on real health care spending. Other subcategories, such as real private, and government health care, pharmaceutical, dental, home nursing, ambulatory, personal medical consumption, and in-patient expenditures have also been examined, and have been found to be affected by the explanatory variables. For several subcomponents there is evidence of supplier inducement. Of the demographic group of variables, the ageing population had an impact only on the per capita real overall, and private health care outlay, and pharmaceutical spending. Also, cointegrating relationships were found and consistent estimators of the elasticities found.

Suggested Citation

  • George Karatzas, 2000. "On the determination of the US aggregate health care expenditure," Applied Economics, Taylor & Francis Journals, vol. 32(9), pages 1085-1099.
  • Handle: RePEc:taf:applec:v:32:y:2000:i:9:p:1085-1099 DOI: 10.1080/000368400404236
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    Cited by:

    1. Hartwig, Jochen, 2008. "What drives health care expenditure?--Baumol's model of 'unbalanced growth' revisited," Journal of Health Economics, Elsevier, vol. 27(3), pages 603-623, May.
    2. Po-Chin Wu & Shiao-Yen Liu & Sheng-Chieh Pan, 2014. "Nonlinear relationship between health care expenditure and its determinants: a panel smooth transition regression model," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 41(4), pages 713-729, November.
    3. Jochen Hartwig & Jan-Egbert Sturm, 2017. "Testing the Grossman model of medical spending determinants with macroeconomic panel data," Chemnitz Economic Papers 001, Department of Economics, Chemnitz University of Technology, revised Feb 2017.
    4. Fabio Pammolli & Francesco Porcelli & Francesco Vidoli & Monica Auteri & Guido Borà, 2017. "La spesa sanitaria delle Regioni in Italia - Saniregio 2017," Working Papers CERM 01-2017, Competitività, Regole, Mercati (CERM).
    5. Jochen Hartwig & Jan-Egbert Sturm, 2012. "An outlier-robust extreme bounds analysis of the determinants of health-care expenditure growth," KOF Working papers 12-307, KOF Swiss Economic Institute, ETH Zurich.
    6. Bhat Ramesh & Jain Nishant, 2004. "Analysis of Public Expenditure on Health Using State Level Data," IIMA Working Papers WP2004-06-08, Indian Institute of Management Ahmedabad, Research and Publication Department.
    7. 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.
    8. Joan Costa-Font & Marin Gemmill & Gloria Rubert, 2008. "Re-visiting the Health Care Luxury Good Hypothesis: Aggregation, Precision, and Publication Biases?," Working Papers in Economics 197, Universitat de Barcelona. Espai de Recerca en Economia.
    9. Serap Taskaya & Mustafa Demirkiran, 2016. "The Causality between Healthcare Resources and Health Expenditures in Turkey. A Granger Causality Method," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 6(2), pages 98-103, April.
    10. Bhat Ramesh & Jain Nishant, 2004. "Time series analysis of private healthcare expenditures GDP: cointegration results with structural breaks," IIMA Working Papers WP2004-05-10, Indian Institute of Management Ahmedabad, Research and Publication Department.
    11. Nicholas Apergis & Rangan Gupta & Chi Keung Marco Lau & Zinnia Mukherjee, 2016. "An Analysis of the Relationship between U.S. State Level Carbon Dioxide Emissions and Health Care Expenditure," Working Papers 201618, University of Pretoria, Department of Economics.
    12. Jorge Alcalde-Unzu & Roberto Ezcurra & Pedro Pascual, 2009. "Cross-country disparities in health-care expenditure: a factor decomposition," Health Economics, John Wiley & Sons, Ltd., vol. 18(4), pages 479-485.
    13. Jesús Clemente & Carmen Marcuello & Antonio Montañés, 2008. "Pharmaceutical expenditure, total health-care expenditure and GDP," Health Economics, John Wiley & Sons, Ltd., vol. 17(10), pages 1187-1206.
    14. Zheng, Xinye & Wang, Jing & Li, Xilu & Yu, Yihua, 2013. "On the supply of China's healthcare resources in a decentralized healthcare system," MPRA Paper 56030, University Library of Munich, Germany.
    15. Joan Costa-Font & Jordi Pons-Novell, 2007. "Public health expenditure and spatial interactions in a decentralized national health system," Health Economics, John Wiley & Sons, Ltd., vol. 16(3), pages 291-306.
    16. Amiri, Arshia & Ventelou, Bruno, 2012. "Granger causality between total expenditure on health and GDP in OECD: Evidence from the Toda–Yamamoto approach," Economics Letters, Elsevier, vol. 116(3), pages 541-544.
    17. Frank Denton & Dean Mountain, 2014. "The implications of mean scaling for the calculation of aggregate consumer elasticities," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 12(3), pages 297-314, September.
    18. Jochen Hartwig & Jan-Egbert Sturm, 2014. "Robust determinants of health care expenditure growth," Applied Economics, Taylor & Francis Journals, vol. 46(36), pages 4455-4474, December.
    19. A. Spithoven, 2009. "Why U.S. health care expenditure and ranking on health care indicators are so different from Canada’s," International Journal of Health Economics and Management, Springer, vol. 9(1), pages 1-24, March.

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