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Determinants of Health Care Expenditures in Finnish Hospital Districts 1993-2005

  • Juho Aaltonen
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    This study assesses which factors explain the development of health care expenditures in Finnish hospital districts during 1993?2005. According to the results, real health care expenditures in hospital districts during the study period increased by 25%, but four fifths of this increase could be explained by the economic situation of the municipalities, demographic factors, the morbidity of the population and registered alcohol consumption. The increase in taxable income in municipalities and the number of diagnosed diabetes patients had a clear positive effect on health care expenditures. With favourable development of local economy municipalities increased health care resources, but this has not led to a respective growth in the service output. The relative size of the Swedishspeaking population and expenditures were also positively associated. In addition, the increase in alcohol consumption had a significant effect on expenditures. Respectively, the decrease in the proportion of disability pensioners had a modest restraining effect on expenditures.

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    Paper provided by Government Institute for Economic Research Finland (VATT) in its series Discussion Papers with number 429.

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    Date of creation: 08 Nov 2007
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    Handle: RePEc:fer:dpaper:429
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    1. Juho Aaltonen & Tanja Kirjavainen & Antti Moisio, 2006. "Efficiency and Productivity in Finnish Comprehensive Schooling 1998-2004," Research Reports 127, Government Institute for Economic Research Finland (VATT).
    2. Aakvik, Arild & Holmas, Tor Helge, 2006. "Access to primary health care and health outcomes: The relationships between GP characteristics and mortality rates," Journal of Health Economics, Elsevier, vol. 25(6), pages 1139-1153, November.
    3. John Nixon & Philippe Ulmann, 2006. "The relationship between health care expenditure and health outcomes," The European Journal of Health Economics, Springer, vol. 7(1), pages 7-18, March.
    4. Maija-Liisa Järviö & Juho Aaltonen & Tarmo Räty & Kalevi Luoma, 2005. "Productivity and its Drivers in Finnish Primary Care 1988-2003," Research Reports 118, Government Institute for Economic Research Finland (VATT).
    5. 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 223-55, March-Apr.
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