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  • Convergence and determinants of health expenditures in OECD countries

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    Author(s)
    Nghiem, Son Hong
    Connelly, Luke Brian
    Griffith University Author(s)
    Nghiem, Son H.
    Year published
    2017
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    Abstract
    This study examines the trend and determinants of health expenditures in OECD countries over the 1975-2004 period. Based on recent developments in the economic growth literature we propose and test the hypothesis that health care expenditures in countries of similar economic development level may converge. We hypothesise that the main drivers for growth in health care costs include: aging population, technological progress and health insurance. The results reveal no evidence that health expenditures among OECD countries converge. Nevertheless, there is evidence of convergence among three sub-groups of countries. We found ...
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    This study examines the trend and determinants of health expenditures in OECD countries over the 1975-2004 period. Based on recent developments in the economic growth literature we propose and test the hypothesis that health care expenditures in countries of similar economic development level may converge. We hypothesise that the main drivers for growth in health care costs include: aging population, technological progress and health insurance. The results reveal no evidence that health expenditures among OECD countries converge. Nevertheless, there is evidence of convergence among three sub-groups of countries. We found that the main driver of health expenditure is technological progress. Our results also suggest that health care is a (national) necessity, not a luxury good as some other studies in this field have found.
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    Journal Title
    Health Economics Review
    Volume
    7
    DOI
    https://doi.org/10.1186/s13561-017-0164-4
    Copyright Statement
    © The Author(s). 2017. This article is distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license, and indicate if changes were made.
    Subject
    Health services and systems
    Public health
    Applied economics
    Health economics
    Publication URI
    http://hdl.handle.net/10072/373320
    Collection
    • Journal articles

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