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Aging, Health and Aggregate Medical Care Spending in France


  • Michel Grignon


Even though institutions rather than ageing influence medical expenditure at the aggregate level, measuring the expected impact of changes in need (age and health status) on expenditure in a given national health care system allows one to assess how institutions allocate resources across ages. I attempt such a decomposition of the variation of medical expenditure between need, socio- economic circumstances and technology in the case of France, using a unique data set at the individual level. I use morbidity as an indicator of health and test for endogeneity of health to expenditure, as well as for temporal stability of the relationship between health and medical care.

Suggested Citation

  • Michel Grignon, 2005. "Aging, Health and Aggregate Medical Care Spending in France," Department of Economics Working Papers 2005-05, McMaster University.
  • Handle: RePEc:mcm:deptwp:2005-05

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    References listed on IDEAS

    1. Jonas Schreyogg, 2004. "Demographic Development and Moral Hazard: Health Insurance with Medical Savings Accounts," The Geneva Papers on Risk and Insurance, The International Association for the Study of Insurance Economics, vol. 29(4), pages 689-704, October.
    2. Brigitte Dormont & Hélène Huber, 2006. "Ageing and changes in medical practices : reassessing theinfluence of demography," Post-Print halshs-00274723, HAL.
    3. R.G. Evans & K.M. McGrail & S.G. Morgan & M.L. Barer & C. Hertzman, 2001. "APOCALYPSE NO: Population Aging and the Future of Health Care Systems," Social and Economic Dimensions of an Aging Population Research Papers 59, McMaster University.
    4. Berndt Ernst R. & Cockburn Iain M. & Cocks Douglas L. & Epstein Arnold M. & Griliches Zvi, 1998. "Is Price Inflation Different for the Elderly? An Empirical Analysis of Prescription Drugs," Forum for Health Economics & Policy, De Gruyter, vol. 1(1), pages 1-45, January.
    5. Dov Chernichovsky & Sara Markowitz, 2004. "Aging and aggregate costs of medical care: conceptual and policy issues," Health Economics, John Wiley & Sons, Ltd., vol. 13(6), pages 543-562.
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    aging; health care spending; France; health status.;


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