Citation

Aísa R, Clemente J, Pueyo F. Int. J. Public Health 2014; 59(5): 867-875.

Affiliation

Departamento de Análisis Económico, Universidad de Zaragoza, Gran Vía 2, 50005, Saragossa, Spain.

Copyright

(Copyright © 2014, Holtzbrinck Springer Nature Publishing Group)

DOI

10.1007/s00038-014-0574-6

PMID

24986366

Abstract

OBJECTIVES: We report new evidence on the contribution of health expenditure to increasing life expectancy in OECD countries, differentiating the effects of public and private health expenditures.

METHODS: A theoretical model is presented and estimated though a cross-country fixed effects multiple regression analysis for a sample of OECD countries over the period 1980-2000.

RESULTS: Although the effect of aggregate health expenditure is not conclusive, public health expenditure plays a significant role in enhancing longevity. However, its influence diminishes as the size of the public health sector on GDP expands, reaching a maximum around the 8 %.

CONCLUSIONS: With the influence of public health expenditure being positive, the ambiguous effect of the aggregate expenditure suggests that the weight of public and private health sectors matters, the second having a lower impact on longevity. This might explain the poor evolution of the life expectancy in countries with a high amount of private resources devoted to health. In such cases, an extension of public services could give rise to a better outcome from the overall health investment.

Language: en