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Cross-Section Analysis of Health Spending with Special Regard to Trends in Austria


  • Hofmarcher, Maria M.

    (Institute for Advanced Studies, Vienna)


During the 90s the increase in health spending which compared to the overall growth had taken place at a rather rapid pace experienced a worldwide slow-down. In relation to overall economic growth and the expansion of other countries' health care systems, Austria's system grew below average- a fact which holds particularly true for the years between 1990 and 1997. This development may largely be due to a constant consolidation of budget and relatively high prices for private households which are possibly overestimated, however. This overestimation of prices are probably caused by unascertained productivity improvements which may have occurred in the acute care sectors. Within our observation period of 16 years, the private households' expenditure reached a peak with spending on physician services experiencing the fastest increase. Although overestimated, the high prices in the health sector together with sharply rising consumption expenditure on health care constitute an increased burden on households.

Suggested Citation

  • Hofmarcher, Maria M., 1999. "Cross-Section Analysis of Health Spending with Special Regard to Trends in Austria," Economics Series 70, Institute for Advanced Studies.
  • Handle: RePEc:ihs:ihsesp:70

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    References listed on IDEAS

    1. Blomqvist, A. G. & Carter, R. A. L., 1997. "Is health care really a luxury?," Journal of Health Economics, Elsevier, vol. 16(2), pages 207-229, April.
    2. Richard Cebula, 1998. "Determinants of the inflation rate of the health care CPI in the US," Applied Economics Letters, Taylor & Francis Journals, vol. 5(1), pages 47-49.
    3. 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.
    4. Joseph P. Newhouse, 1992. "Medical Care Costs: How Much Welfare Loss?," Journal of Economic Perspectives, American Economic Association, vol. 6(3), pages 3-21, Summer.
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    More about this item


    Oesterreich; Health Expenditures; Cross Section; Estimation of; European Union; Austria;

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • I10 - Health, Education, and Welfare - - Health - - - General


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