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The (W)Health of Nations: The Impact of Health Expenditure on the Number of Chronic Diseases

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Abstract

We investigate the impact of health expenditure on health outcomes on a large sample of Europeans aged above 50 using individual and regional-level data. We find a significant and negative effect of lagged health expenditure on later changes in the number of chronic diseases. This effect varies according to age, health behavior, gender, income and education, thereby supporting the hypothesis that the impact of health expenditure across different interest groups is heterogeneous. Our empirical findings are confirmed also when health expenditure is instrumented with parliament political composition.

Suggested Citation

  • Leonardo Becchetti & Pierluigi Conzo & Francesco Salustri, 2015. "The (W)Health of Nations: The Impact of Health Expenditure on the Number of Chronic Diseases," CEIS Research Paper 348, Tor Vergata University, CEIS, revised 25 Jun 2015.
  • Handle: RePEc:rtv:ceisrp:348
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    Keywords

    health satisfaction; education; life satisfaction; public health costs;

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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