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Health Economics Review
Published in: Health Economics Review 1/2017

Open Access 01-12-2017 | Research

Convergence and determinants of health expenditures in OECD countries

Authors: Son Hong Nghiem, Luke Brian Connelly

Published in: Health Economics Review | Issue 1/2017

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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 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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Metadata
Title
Convergence and determinants of health expenditures in OECD countries
Authors
Son Hong Nghiem
Luke Brian Connelly
Publication date
01-12-2017
Publisher
Springer Berlin Heidelberg
Published in
Health Economics Review / Issue 1/2017
Electronic ISSN: 2191-1991
DOI
https://doi.org/10.1186/s13561-017-0164-4

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