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Red Herring in the Vistula River: Time-to-Death and Health Care Expenditure

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  • Maciej Lis

Abstract

The aim of the article is to quantify the role of time-to-death in shaping health care costs. By combining a detailed break-down of population-wide data on publicly financed health care expenditure with the population and mortality data we are able to estimate a flexible model of live-cycle healthcare expenditure. We show that introducing time to death into the model enables the health care costs model to fit data perfectly. Our results confirm that the cumulative costs of health care over life-span depend on the age of death to a limited extend. As a result, the effect of rising life expectancy has a minor impact on HCE. However, the transitional effect of the changing age structure of the population should affect the aggregate health care expenditure.

Suggested Citation

  • Maciej Lis, 2015. "Red Herring in the Vistula River: Time-to-Death and Health Care Expenditure," IBS Working Papers 13/2015, Instytut Badan Strukturalnych.
  • Handle: RePEc:ibt:wpaper:wp132015
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    References listed on IDEAS

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    Cited by:

    1. Maciej Lis, 2016. "Age or time-to-death – what drives health care expenditures? Panel data evidence from the OECD countries," IBS Working Papers 04/2016, Instytut Badan Strukturalnych.

    More about this item

    Keywords

    healthcare expenditure; ageing; red herring;

    JEL classification:

    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination

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