Analysis of International Health-Related Expenditure: Lessons for France

Abstract

Bouthevillain and Hervé examine the policy problems posed by the expansion of health expenditure in France and in other developed countries. They provide a concise overview of the main features of the different health-care systems and consider some aspects of insurance theory that apply to healthcare. Through an econometric study of the main determinants of the growth in health spending, Bouthevillain and Hervé identify the explanatory factors at work in various countries. The results are compared with those of earlier studies. Demand factors have a dominant role in the medium term. Finally, the Authors consider the objectives of the recent reform of the French health care system and describe the measures which can address the pressures towards greater levels of health spending.