The Drivers of Public Health Spending: Integrating Policies and Institutions

41 Pages Posted: 12 Apr 2016

See all articles by Christine de la Maisonneuve

Christine de la Maisonneuve

Organization for Economic Co-Operation and Development (OECD) - Economics Department (ECO)

Rodrigo Moreno-Serra

University of York - Department of Economics & Centre for Health Economics

Fabrice Murtin

Stanford University; London School of Economics & Political Science (LSE)

Joaquim Oliveira Martins

OECD; University Paris-Dauphine - PSL

Date Written: March 2016

Abstract

This paper investigates the impact of policies and institutions on health expenditures for a large panel of OECD countries for the period 2000-10. We use a set of 20 policy and institutional indicators developed by the OECD characterising the main supply-side, demand-side, and public management, coordination and financing features of health systems. The impact of these indicators is tested alongside control variables related to demographic (dependency ratio) and non-demographic (income, prices and technology) drivers of health expenditures per capita. Overall, there is a reasonably good fit between the expected signs of the coefficients for the institutional indicators and the actual estimates. By integrating the role of policies and institutions, together with the other primary determinants, our analysis is able to explain most of the cross-country variation in public health expenditures.

Keywords: public health expenditures, health policies and institutions, demographic and non-demographic effects, linear and non-linear estimates, cross-country variation

JEL Classification: C1; H51; I12; I13; I18; J11

Suggested Citation

de la Maisonneuve, Christine and Moreno-Serra, Rodrigo and Murtin, Fabrice and Oliveira Martins, Joaquim, The Drivers of Public Health Spending: Integrating Policies and Institutions (March 2016). OECD Economics Department Working Paper , No. 1283, 2016. Available at SSRN: https://ssrn.com/abstract=2762212 or http://dx.doi.org/10.2139/ssrn.2762212

Christine De la Maisonneuve (Contact Author)

Organization for Economic Co-Operation and Development (OECD) - Economics Department (ECO) ( email )

2 rue Andre Pascal
Paris Cedex 16, MO 63108
France

Rodrigo Moreno-Serra

University of York - Department of Economics & Centre for Health Economics ( email )

York YO10 5DD
United Kingdom
+44 1904 321 411 (Phone)

Fabrice Murtin

Stanford University ( email )

Stanford, CA 94305
United States

London School of Economics & Political Science (LSE)

Houghton Street
London, WC2A 2AE
United Kingdom

Joaquim Oliveira Martins

OECD ( email )

2 Rue André Pascal
75775 Paris Cedex 16
France
+33 1 45 24 88 53 (Phone)

HOME PAGE: http://www.oecd.org/cfe

University Paris-Dauphine - PSL ( email )

PARIS
France

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