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On the determination of the US aggregate health care expenditure

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  • George Karatzas

Abstract

Per capita real health care expenditure is examined against three major groups of explanatory variables: economic, demographic, and health stock, and it is found that the three groups of variables have an impact on real health care spending. Other subcategories, such as real private, and government health care, pharmaceutical, dental, home nursing, ambulatory, personal medical consumption, and in-patient expenditures have also been examined, and have been found to be affected by the explanatory variables. For several subcomponents there is evidence of supplier inducement. Of the demographic group of variables, the ageing population had an impact only on the per capita real overall, and private health care outlay, and pharmaceutical spending. Also, cointegrating relationships were found and consistent estimators of the elasticities found.

Suggested Citation

  • George Karatzas, 2000. "On the determination of the US aggregate health care expenditure," Applied Economics, Taylor & Francis Journals, vol. 32(9), pages 1085-1099.
    • Handle: RePEc:taf:applec:v:32:y:2000:i:9:p:1085-1099
    DOI: 10.1080/000368400404236
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    References listed on IDEAS

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    1. Mark J. Warshawsky, 1991. "Factors contributing to rapid growth in national expenditures on health care," Finance and Economics Discussion Series 182, Board of Governors of the Federal Reserve System (U.S.).
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