Decomposing the Determinants of Health Care Expenditure: The Case of Spain

The European Journal of Health Economics, vol. 13(1), 2012

Posted: 9 Oct 2010 Last revised: 3 Apr 2012

See all articles by David Cantarero

David Cantarero

University of Cantabria - Department of Economics

Santiago Lago-Peñas

University of Vigo, GEN (Governance and Economics Research Network)

Multiple version iconThere are 2 versions of this paper

Date Written: October 7, 2010

Abstract

The aim of this paper is to analyze the determinants of regional health-care expenditure in Spain. The coexistence of several models concerning the degree of spending power decentralization and financing systems makes Spain a singular case. It also allows us to draw conclusions relevant to other countries in decentralizing their health-care systems, and to understand cross-country differences with estimated parameters. Using data from the Spanish regions for the period 1992–2005, we show that the estimated health public expenditure income elasticity does change depending on the omission of relevant variables, econometric specifications and techniques, and institutional arrangements. Moreover, while demographic structure is a very relevant factor when explaining health-care expenditure dynamics, multicollinearity biases econometric parameter estimates.

Keywords: Fiscal federalism, Regional health expenditure, regional inequalities

JEL Classification: I18, I38, H73

Suggested Citation

Lago-Peñas, Santiago and Cantarero, David, Decomposing the Determinants of Health Care Expenditure: The Case of Spain (October 7, 2010). The European Journal of Health Economics, vol. 13(1), 2012, Available at SSRN: https://ssrn.com/abstract=1688874

David Cantarero (Contact Author)

University of Cantabria - Department of Economics ( email )

Av. Los Castros s/n
Santander 39005, Cantabria 39005
Spain

Santiago Lago-Peñas

University of Vigo, GEN (Governance and Economics Research Network) ( email )

Ourense, Ourense 32004
Spain

HOME PAGE: http://webs.uvigo.es/infogen

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