Health care expenditure and fiscal sustainability: evidence from the OECD countries
Δαπάνες για την υγεία και δημοσιονομική βιωσιμότητα: στοιχεία από τις χώρες του ΟΟΣΑ
Health care expenditures are expected to challenge the fiscal sustainability even more in the coming years. The purpose of this study is to examine the relationship and spillover effects between the Health Care Expenditures and health measured by the Potential Years of Life Lost and the marginal impact they have on public accounts. Using data from 29 OECD countries during the period 1990-2017, we apply spatial health econometrics models as well as a fixed-effects model. For the calculation of the marginal impact, we used the coefficient of our spatial model into a fiscal analytic framework consisting of averaged tax revenues and costs of the government. We find a positive relationship between Health Care Expenditures and health as well as significant spillover effects which are translated fiscally into $2551.45 revenue for every per capita dollar spent.