Measuring the relationship between income and NHEs (national health expenditures).
Moore, William J
Date of Pub
Fheili, Mohammad; Newman, Robert J
This article uses recently published time series data for the Organization for Economic Cooperation and Development countries
to estimate income elasticities for health care expenditures. Several different models and alternative specifications are
examined to determine the sensitivity and robustness of the estimated relationships. Income is the dominant-determinant of
health care spending and longrun income elasticity for health care is significantly greater than unity. This implies that
health care is a luxury good, and expenditures will tend to rise with the level of national income. There is little evidence
that the degree of public finance reduces the level of health care expenditures.
Data Collection : Europe : Health Expenditures/statistics & numerical data : Health Services Research : Income/statistics
& numerical data : International Agencies/statistics & numerical data : Models, Econometric : Regression Analysis