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The Determinants of Life Expectancy: An Analysis of the OECD Health Data

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  • James W. Shaw
  • William C. Horrace
  • Ronald J. Vogel

Abstract

This study considers an aggregate life expectancy production function for a sample of developed countries. We find that pharmaceutical consumption has a positive effect on life expectancy at middle and advanced ages but is sensitive to the age distribution of a given country. Thus, ignoring age distribution in a regression of life expectancy on pharmaceutical consumption creates an omitted‐variable bias in the pharmaceutical coefficient. We find that doubling annual pharmaceutical expenditures adds about one year of life expectancy for males at age 40 and slightly less than a year of life expectancy for females at age 65. We also present results for lifestyle inputs into the production of life expectancy. For example, decreasing tobacco consumption by about two cigarettes per day or increasing fruit and vegetable consumption by 30% (one‐third pound per day) increases life expectancy approximately one year for 40‐year‐old females.

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  • James W. Shaw & William C. Horrace & Ronald J. Vogel, 2005. "The Determinants of Life Expectancy: An Analysis of the OECD Health Data," Southern Economic Journal, John Wiley & Sons, vol. 71(4), pages 768-783, April.
    • Handle: RePEc:wly:soecon:v:71:y:2005:i:4:p:768-783
    DOI: 10.1002/j.2325-8012.2005.tb00675.x
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    References listed on IDEAS

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    Cited by:

    1. Pedro Antonio Martín Cervantes & Nuria Rueda López & Salvador Cruz Rambaud, 2019. "A Causal Analysis of Life Expectancy at Birth. Evidence from Spain," IJERPH, MDPI, vol. 16(13), pages 1-14, July.
    2. Zhiheng Chen & Yuting Ma & Junyi Hua & Yuanhong Wang & Hongpeng Guo, 2021. "Impacts from Economic Development and Environmental Factors on Life Expectancy: A Comparative Study Based on Data from Both Developed and Developing Countries from 2004 to 2016," IJERPH, MDPI, vol. 18(16), pages 1-18, August.
    3. Al-Shboul, Mohammad & Al Rawashdeh, Rami, 2022. "The impact of institutional quality and resources rent on health: The case of GCC," Resources Policy, Elsevier, vol. 78(C).
    4. Paolo Roffia & Alessandro Bucciol & Sara Hashlamoun, 2023. "Determinants of life expectancy at birth: a longitudinal study on OECD countries," International Journal of Health Economics and Management, Springer, vol. 23(2), pages 189-212, June.
    5. Pedro Antonio Martín Cervantes & Nuria Rueda López & Salvador Cruz Rambaud, 2020. "The Relative Importance of Globalization and Public Expenditure on Life Expectancy in Europe: An Approach Based on MARS Methodology," IJERPH, MDPI, vol. 17(22), pages 1-20, November.
    6. Peter Akioyamen & Mehmet A. Begen, 2023. "A Spatio-Temporal Analysis of OECD Member Countries’ Health Care Systems: Effects of Data Missingness and Geographically and Temporally Weighted Regression on Inference," IJERPH, MDPI, vol. 20(13), pages 1-18, June.

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