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COVID-19 mortality and health expenditures across European countries: the positive correlation puzzle

Author

Listed:
  • Serge Blondel

    (GRANEM - Groupe de Recherche Angevin en Economie et Management - UA - Université d'Angers - AGROCAMPUS OUEST - Institut National de l'Horticulture et du Paysage, LIRAES - EA 4470 - Laboratoire Interdisciplinaire de Recherche Appliquée en Economie de la Santé - UPD5 - Université Paris Descartes - Paris 5)

  • Radu Vranceanu

    (ESSEC Business School and THEMA (UMR 8184) - ESSEC Business School - THEMA - Théorie économique, modélisation et applications - CNRS - Centre National de la Recherche Scientifique - CY - CY Cergy Paris Université)

Abstract

The positive correlation between health share expenditures and COVID-19 case fatalities in a cross-section of 31 European countries is puzzling. The positive relationships is also detected in weighted OLS and IV models that control for many usual suspects of the COVID-19 mortality: (1) health indicators (personal risk factors, medical resources), (2) virus ease of circulation, (3) macroeconomic variables related to the economic development and social orientation of the country. COVID-19 case fatalities are lower in countries with significant resources dedicated to health care (hospital beds and medical doctors); the contribution of virus circulation factors is less significant. Policy implications follow.

Suggested Citation

  • Serge Blondel & Radu Vranceanu, 2020. "COVID-19 mortality and health expenditures across European countries: the positive correlation puzzle," Working Papers hal-02920258, HAL.
    • Handle: RePEc:hal:wpaper:hal-02920258
    Note: View the original document on HAL open archive server: https://essec.hal.science/hal-02920258v2
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    COVID-19; health care systems; Europe; efficiency; mortality; health policy;
    All these keywords.

    JEL classification:

    • H12 - Public Economics - - Structure and Scope of Government - - - Crisis Management
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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