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The role of technology in health care expenditure in the EU

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  • Kamil Dybczak
  • Bartosz Przywara

Abstract

Total health care expenditure in the EU countries accounts for between 4 and 11% of GDP, out of which between 3 and 9% of GDP is financed from public sources. As it accounts for between 10 and 18 % of total government spending, health care is therefore among the most significant items of social public expenditure. In addition, public expenditure on health care has been growing over most of the second half of the 20th century, not only in absolute terms, but also in relation to the national income.The paper analyses past developments of health care expenditure in EU Member States. The methodology used expands the set of standard explanatory variables, such as demographic structure, income and health status of the population, by a variable characterising the effect of the technological progress on health care spending.Subsequently the paper provides a projection of the long-term development of health care expenditure, with the methodology based on the EC-EPC model extended by the impact of technological development.

Suggested Citation

  • Kamil Dybczak & Bartosz Przywara, 2010. "The role of technology in health care expenditure in the EU," European Economy - Economic Papers 2008 - 2015 400, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    • Handle: RePEc:euf:ecopap:0400
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    2. Werding, Martin, 2014. "Demographischer Wandel und öffentliche Finanzen: Langfrist-Projektionen 2014-2060 unter besonderer Berücksichtigung des Rentenreform-Pakets der Bundesregierung," Working Papers 01/2014, German Council of Economic Experts / Sachverständigenrat zur Begutachtung der gesamtwirtschaftlichen Entwicklung.
    3. Felipa de Mello-Sampayo & Sofia de Sousa-Vale, 2014. "Financing Health Care Expenditure in the OECD Countries: Evidence from a Heterogeneous, Cross-Sectional Dependent Panel," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 61(2), pages 207-225, March.
    4. Levaggi, Rosella & Moretto, Michele & Pertile, Paolo, 2014. "Two-part payments for the reimbursement of investments in health technologies," Health Policy, Elsevier, vol. 115(2), pages 230-236.
    5. Syeda Anam Fatima Rizvi, 2020. "Cost effectiveness of health expenditures: A macro level study for developing and developed countries," Post-Print hal-03341702, HAL.
    6. Jabłonowski, Janusz & Müller, Christoph, 2014. "A fiscal outlook for Poland: Update 2014. Background paper prepared for the World Bank's Country Economic Memorandum (CEM) for Poland," FZG Discussion Papers 54, University of Freiburg, Research Center for Generational Contracts (FZG).
    7. Werding, Martin & Läpple, Benjamin & Schirner, Sebastian, 2024. "Modellrechnungen für den Sechsten Tragfähigkeitsbericht des BMF," FiFo Reports - FiFo-Berichte 33, University of Cologne, FiFo Institute for Public Economics.
    8. Felipa de Mello-Sampayo & Sofia de Sousa-Vale, 2014. "Financing Health Care Expenditure in the OECD Countries: Evidence from a Heterogeneous, Cross-Sectional Dependent Panel," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 61(2), pages 207-225.
    9. Hofmarcher, Maria M. & Festl, Eva & Bishop-Tarver, Leslie, 2016. "Health sector employment growth calls for improvements in labor productivity," Health Policy, Elsevier, vol. 120(8), pages 894-902.
    10. Rosella Levaggi & Michele Moretto & Paolo Pertile, 2012. "DRGs: the link between investment in technologies and appropriateness," Working Papers 31/2012, University of Verona, Department of Economics.
    11. Błażej Łyszczarz & Ewelina Nojszewska, 2015. "Determinants of health care expenditure in Europe," Collegium of Economic Analysis Annals, Warsaw School of Economics, Collegium of Economic Analysis, issue 39, pages 183-198.
    12. Colombier, Carsten, 2012. "Healthcare expenditure projections up to 2060," MPRA Paper 104919, University Library of Munich, Germany.
    13. Aretz, Bodo & Christofzik, Désirée I. & Scheuering, Uwe & Werding, Martin, 2016. "Auswirkungen der Flüchtlingsmigration auf die langfristige Tragfähigkeit der öffentlichen Finanzen," Working Papers 06/2016, German Council of Economic Experts / Sachverständigenrat zur Begutachtung der gesamtwirtschaftlichen Entwicklung.
    14. Sorenson, Corinna & Drummond, Michael & Bhuiyan Kahn, Beena, 2013. "Medical technology as a key driver of rising health expenditures: disentangling the relationship," LSE Research Online Documents on Economics 48043, London School of Economics and Political Science, LSE Library.
    15. Carsten Colombier, 2018. "Population ageing in healthcare – a minor issue? Evidence from Switzerland," Applied Economics, Taylor & Francis Journals, vol. 50(15), pages 1746-1760, March.
    16. Werding, Martin, 2016. "Modellrechnungen für den vierten Tragfähigkeitsbericht des BMF [Simulations for the 4th Sustainability Report]," FiFo Reports - FiFo-Berichte 20, University of Cologne, FiFo Institute for Public Economics.
    17. Keegan, Conor & Brick, Aoife & Bergin, Adele & Wren, Maev-Ann & Whyte, Richard & Henry, Edward, 2020. "Projections of expenditure for public hospitals in Ireland, 2018–2035, based on the Hippocrates Model," Research Series, Economic and Social Research Institute (ESRI), number RS117.

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    More about this item

    Keywords

    Baltic States financial accelerator dynamic general equilibrium Roeger Lendvai External Deficits in the Baltics 1995 to 2007 Catching Up or Imbalances;

    JEL classification:

    • I1 - Health, Education, and Welfare - - Health
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts

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