The fiscal impact of health care expenditure: Evidence from the OECD countries

Konstantinos Christopoulos and Konstantinos Eleftheriou

Economic Analysis and Policy, 2020, vol. 67, issue C, 195-202

Abstract: Health care expenditures are expected to challenge the fiscal sustainability even more in the coming years. The purpose of this study is to examine the relationship and spillover effects between the health care expenditure and health outcome measured by the potential years of life lost as well as the marginal impact of the former on public accounts. Using data from 29 OECD countries over the period 1990–2017, we apply spatial econometrics as well as a fiscal analytic framework in order to calculate the fiscal impact of health care expenditure. We find a positive relationship between health care expenditures and health outcome which is translated fiscally into $0.035 per capita net revenue for every per capita dollar spent on health care.

Keywords: Fiscal; Health care expenditure; Health policy; Spatial (search for similar items in EconPapers)
JEL-codes: C33 H51 I18 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:67:y:2020:i:c:p:195-202

DOI: 10.1016/j.eap.2020.07.010

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