Health Expenditures And Life Expectancy Around The World: A Quantile Regression Approach
Previous literature has produced mixed results on the effects of country health expenditures on longevity. More importantly, all previous studies have evaluated the expenditure effects on the mean of the life expectancy distribution, ignoring the possibility that the expenditure returns may not be the same for countries that differ in their life expectancies. In this paper, we evaluate the heterogeneity in country health expenditure effects throughout the life expectancy distribution applying quantile regression to an assembled dataset of 177 countries. We find significant heterogeneities in expenditures effects on life expectancy that are completely masked by ordinary least squares (OLS), which underestimates (overestimates) the expenditure returns for countries ranking at low (high) life-expectancy quantiles. The largest returns from increased spending are for countries at the left margin of the life expectancy distribution (mainly at quantiles 0.25 and lower), for which a $100 increase in per capita spending leads to 11.5 and 11 months of life for males and females, respectively. The results suggest that increasing healthcare spending in these countries may have significant population-wide life expectancy returns.
|Date of creation:||Jan 2012|
|Date of revision:|
|Note:||Revise and Resubmit to Health Economics|
|Contact details of provider:|| Postal: 13 Yakira Str, 04119 Kyiv|
Web page: http://www.kse.org.ua/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Wolfe, Barbara L., 1986. "Health status and medical expenditures: Is there a link?," Social Science & Medicine, Elsevier, vol. 22(10), pages 993-999, January.
- Roger Koenker & Kevin F. Hallock, 2001.
Journal of Economic Perspectives,
American Economic Association, vol. 15(4), pages 143-156, Fall.
- Koenker, Roger W & Bassett, Gilbert, Jr, 1978. "Regression Quantiles," Econometrica, Econometric Society, vol. 46(1), pages 33-50, January.
- Yannis Bilias & Roger Koenker, 2001. "Quantile regression for duration data: A reappraisal of the Pennsylvania Reemployment Bonus Experiments," Empirical Economics, Springer, vol. 26(1), pages 199-220.
- George L. Wehby & Jeffrey C. Murray & Eduardo E. Castilla & Jorge S. Lopez-Camelo & Robert L. Ohsfeldt, 2009. "Quantile effects of prenatal care utilization on birth weight in Argentina," Health Economics, John Wiley & Sons, Ltd., vol. 18(11), pages 1307-1321.
- Omar Arias & Kevin F. Hallock & Walter Sosa Escudero, 1999.
"Individual Heterogeneity in the Returns to Schooling: Instrumental Variables Quantile Regression using Twins Data,"
Department of Economics, Working Papers
016, Departamento de Economía, Facultad de Ciencias Económicas, Universidad Nacional de La Plata.
- Omar Arias & Walter Sosa-Escudero & Kevin F. Hallock, 2001. "Individual heterogeneity in the returns to schooling: instrumental variables quantile regression using twins data," Empirical Economics, Springer, vol. 26(1), pages 7-40.
When requesting a correction, please mention this item's handle: RePEc:kse:dpaper:47. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Iryna Sobetska)
If references are entirely missing, you can add them using this form.