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The relationship between health expenditures and the age structure of the population in OECD countries

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  • Joan M. O'Connell

Abstract

The purpose of this study was to analyse national health expenditures of OECD countries relative to their age structures. Using econometric techniques designed to analyse cross‐sectional time series data, the ageing of the population was found to affect health spending in several countries while having no effect in others. In addition, the effect of income on health spending was lower than that generally reported in the literature. These findings suggest that unobserved country‐specific factors play a major role in determining the amount of resources allocated to health services in a country. Such factors also determine if the ageing of the population is associated with increased health spending.

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  • Joan M. O'Connell, 1996. "The relationship between health expenditures and the age structure of the population in OECD countries," Health Economics, John Wiley & Sons, Ltd., vol. 5(6), pages 573-578, November.
  • Handle: RePEc:wly:hlthec:v:5:y:1996:i:6:p:573-578
    DOI: 10.1002/(SICI)1099-1050(199611)5:63.0.CO;2-L
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    References listed on IDEAS

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    1. Parkin, David & McGuire, Alistair & Yule, Brian, 1987. "Aggregate health care expenditures and national income : Is health care a luxury good?," Journal of Health Economics, Elsevier, vol. 6(2), pages 109-127, June.
    2. Gerdtham, Ulf-G. & Sogaard, Jes & Andersson, Fredrik & Jonsson, Bengt, 1992. "An econometric analysis of health care expenditure: A cross-section study of the OECD countries," Journal of Health Economics, Elsevier, vol. 11(1), pages 63-84, May.
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    Cited by:

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    2. Slade, Eric P. & Anderson, Gerard F., 2001. "The relationship between per capita income and diffusion of medical technologies," Health Policy, Elsevier, vol. 58(1), pages 1-14, October.

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