fbpx

Income RELATED Elasticity of Health Expenditure: Some Empirical Evidence for Bulgaria

by | Jan 14, 2020 | DOI 2018

Nikolay Atanasov
Medical University, Faculty of Public Health, Department of Health Management and Health Economics, Plovdiv, Bulgaria
DOI: https://doi.org/10.31410/eraz.2018.106

โ€‹โ€‹ โ€‹โ€‹

4th International Conference – ERAZ 2018 – KNOWLEDGE BASED SUSTAINABLE ECONOMIC DEVELOPMENT, Sofia- Bulgaria, June 7, 2018, CONFERENCE PROCEEDINGS published by: Association of Economists and Managers of the Balkans, Belgrade, Serbia;  Faculty of Business Studies, Mediterranean University – Podgorica, Montenegro; University of National and World Economy – Sofia, Bulgaria; Faculty of Commercial and Business Studies – Celje, Slovenia; Faculty of Applied Management, Economics and Finance โ€“ Belgrade, Serbia, ISBN 978-86-80194-12-7

Abstract


The aim of this study is to be presented and analyzed the trends of the household health expenditure dynamics and its source โ€“ the income considering the elasticity for the period 1990-2017. The elasticity is assessed trough OLS estimates of the slope coefficient of the linear health expenditure model built with income as an independent variable.
The results reveal the existence of low level of the income elasticity of the households health expenditure (it is estimated on 2% of the real income changings). This general finding could be explained with a common nature of the health goods which consumption are often imperative and cannot be delayed. Other factors like the crisis and transition to the social insurance financing with definite out-of-pocket payments could cause the relatively low income related elasticity measures.

Key words

household health expenditure, household income, health financing, income elasticity, crisis effects

References

  1. Gerdtham, U. and Jำงnsson, B. (2000) International comparisons of health expenditure, Handbook of Health Economics, Volume 1A, Edited by Culyer, A. and Newhouse, J., Elsevier.
  2. Feng, Y., Watt T., Charlesworth, A., Marsden G., Roberts A., Sussex J. (2017) What Determines the Health Care Expenditure of High Income Countries? A Dynamic Estimation. Applied Economics and Finance,  4( 6) 2017, doi:10.11114/aef.v4i6.2586
  3.  Wagstaff, A. et al (1999) Equity in the finance of health care: some further international comparisons. Journal of Health Economics, 18:263-290.
  4. Doorslaer, E. et al (1999) The redistributive effect of health care finance in twelve OECD countries. Journal of Health Economics, 18:291-313.
  5. Bhat R., Jain, N. Time series analysis of private healthcare expenditures GDP: cointegration results with structural breaks. Indian Institute of Management Ahmedabad, 2004.
  6. Parkin, D., McGuire, A., Yule, B. (1987). Aggregate health care expenditures and national income: is health care a luxury good? Journal of Health Economics, 2: 109-127.
  7. Roberts, J. (1999). Sensitivity of elasticity estimates for OECD health care spending: analysis of a dynamic heterogeneous data field. Health Economics, 5:459-472.
  8. Sen, A. (2005). Is health care a luxury? New evidence from OECD data. International Journal of Health Care Finance and Economics, 2:147-164.โ€‹

Atanasov_Income RELATED Elasticity of Health Expenditure Some Empirical Evidence for Bulgaria_pp_106-114Download