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What Drives Healthcare Expenditure Growth? Evidence from Central and Eastern European Economies

In: Ekonomický časopis/Journal of Economics, vol. 69, no. 7
Milena Konatar Číslo ORCID - Snježana Kaštelan Číslo ORCID - Uršula Kaštelan - Jovan Đurašković - Milivoje Radović
Detaily:
Rok, strany: 2021, 750 - 765
Jazyk: eng
Kľúčové slová:
healthcare expenditures, CEE countries, panel ARDL modeling, income elasticity; JEL Classification: I10, O52, C33
Typ článku: Vedecký článok / Article
Typ dokumentu: PDF / PDF
DOI: https://doi.org/10.31577/ekoncas.2021.07.05
Full text
O článku:
The aim of this paper is to examine the determinants of healthcare expenditure in Central and Eastern Europe (CEE) countries. The study covers the period between the years 2000 and 2018. In our research, we implement error correction based on an autoregressive distributed lag (ARDL) model, with focus on the Pooled Mean Group (PMG) estimator. Our estimation results revealed that, in combination, health spending, income, medical progress, population ageing and fiscal capacity together form a statistically significant and stable long-term economic relationship. Our analysis indicates that healthcare spending responds to both short-term and long-term income changes. The obtained results support the prevailing view that health should not be considered a luxury good with an income elasticity close to unity. In the long term, medical progress and population ageing also significantly influence health spending, whilst these variables prove to be insignificant over the short term. Ultimately, government capacity is positively related to health spending dynamics.
The aim of this paper is to examine the determinants of healthcare expenditure in Central and Eastern Europe (CEE) countries. The study covers the period between the years 2000 and 2018. In our research, we implement error correction based on an autoregressive distributed lag (ARDL) model, with focus on the Pooled Mean Group (PMG) estimator. Our estimation results revealed that, in combination, health spending, income, medical progress, population ageing and fiscal capacity together form a statistically significant and stable long-term economic relationship. Our analysis indicates that healthcare spending responds to both short-term and long-term income changes. The obtained results support the prevailing view that health should not be considered a luxury good with an income elasticity close to unity. In the long term, medical progress and population ageing also significantly influence health spending, whilst these variables prove to be insignificant over the short term. Ultimately, government capacity is positively related to health spending dynamics.
Ako citovať:
ISO 690:
Konatar, M., Kaštelan, S., Kaštelan, U., Đurašković, J., Radović, M. 2021. What Drives Healthcare Expenditure Growth? Evidence from Central and Eastern European Economies. In Ekonomický časopis/Journal of Economics, vol. 69, no.7, pp. 750-765. 0013-3035. DOI: https://doi.org/10.31577/ekoncas.2021.07.05

APA:
Konatar, M., Kaštelan, S., Kaštelan, U., Đurašković, J., Radović, M. (2021). What Drives Healthcare Expenditure Growth? Evidence from Central and Eastern European Economies. Ekonomický časopis/Journal of Economics, 69(7), 750-765. 0013-3035. DOI: https://doi.org/10.31577/ekoncas.2021.07.05
O vydaní:
Vydavateľ: Ekonomický ústav SAV / Ekonomický ústav SAV
Publikované: 21. 9. 2021