Decentralization as a determinant of health care expenditure: empirical analysis for OECD countries

Ilaria Mosca

Applied Economics Letters, 2007, vol. 14, issue 7, 511-515

Abstract: Territorial decentralization involves the transfer of responsibilities from a central government to lower levels of government. A common trend in different developed countries has been to decentralize some health functions (managerial and/or financial) to local governments. The set-up of the health care system and its degree of decentralization are here utilized in a panel data analysis as a determinant of health care expenditure in a sample of 20 Organization for Economic Co-operation and Development (OECD) countries for the period 1990 to 2000. These findings lend support that demographic, supply-related and socio-economic factors impact on overall health care costs and a decentralized health care setting implies higher health expenditure.

Date: 2007
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DOI: 10.1080/13504850500438736

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