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Health care expenditure disparities in the European Union and underlying factors: a distribution dynamics approach

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  • José Villaverde
  • Adolfo Maza
  • María Hierro

Abstract

This paper examines health care expenditure (HCE) disparities between the European Union countries over the period 1995–2010. By means of using a continuous version of the distribution dynamics approach, the key conclusions are that the reduction in disparities is very weak and, therefore, persistence is the main characteristic of the HCE distribution. In view of these findings, a preliminary attempt is made to add some insights into potentially main factors behind the HCE distribution. The results indicate that whereas per capita income is by far the main determinant, the dependency ratio and female labour participation do not play any role in explaining the HCE distribution; as for the rest of the factors studied (life expectancy, infant mortality, R&D expenditure and public HCE expenditure share), we find that their role falls somewhat in between. Copyright Springer Science+Business Media New York 2014

Suggested Citation

  • José Villaverde & Adolfo Maza & María Hierro, 2014. "Health care expenditure disparities in the European Union and underlying factors: a distribution dynamics approach," International Journal of Health Economics and Management, Springer, vol. 14(3), pages 251-268, September.
    • Handle: RePEc:kap:ijhcfe:v:14:y:2014:i:3:p:251-268
    DOI: 10.1007/s10754-014-9147-8
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    4. Anne Mason & Idaira Rodriguez Santana & María José Aragón & Nigel Rice & Martin Chalkley & Raphael Wittenberg & Jose-Luis Fernandez, 2019. "Drivers of health care expenditure: Final report," Working Papers 169cherp, Centre for Health Economics, University of York.

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    More about this item

    Keywords

    Health care expenditure; Disparities; Distribution dynamics approach; Persistence; EU countries; I10; C14;
    All these keywords.

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General

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