Does it pay to pay for health? How health expenditure translates into GDP growth in OECD countries

Michał Kowalczuk and Andrzej Torój

Collegium of Economic Analysis Annals, 2015, issue 39, 103-118

Abstract: We estimate the impact of health expenditure on GDP in high-income countries (OECD sample) by adding more economic structure of theoretical transmission channels from health spending to productive capacity of the economy, as compared to reduced-form regressions widespread in the literature. Our approach is based on three separate panel regressions, simulating the effect of presenteeism and absenteeism (via labour productivity), long-term working disability (via employment rate) and mortality (via probability of death during working age). In all three cases, health expenditure has turned out to act in a GDP-improving, statistically significant way.

Keywords: health expenditure; indirect cost of illness; healthcare efficiency; panel estimation (search for similar items in EconPapers)
JEL-codes: C23 C33 I13 I15 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:sgh:annals:i:39:y:2015:p:103-118

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