On the relationship between GDP and health care expenditurea new perspective

1. Lago Peñas, Santiago
2. Cantarero Prieto, David
3. Blázquez Fernández, Carla

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Outras publicacións en: Papeles de trabajo del Instituto de Estudios Fiscales. Serie economía

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In this paper we analyze the relationship between income and health expenditure in 31 OECD countries. We focus on the difference between short and long term multipliers and we also check the adjustment process of health care expenditure to changes in per capita GDP and its main components. In both cases we test if results differ in countries with a higher share of private expenditure on total health expenditure. Econometric results show that the long-run multiplier is close to unity, that health expenditure is more sensitive to per capita income cyclical movements than to trend movements, and that those countries with a higher share of private health expenditure fit faster and following a different pattern.

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