Ageing of population and health care expenditure: A red herring?

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Authors

This paper studies the relationship between health care expenditure (HCE) and age, using longitudinal rather than cross-sectional data. The econometric analysis of HCE in the last eight quarters of life of individuals who died during the period 1983-1992 indicates that HCE depends on remaining lifetime but not on calendar age, at least beyond 65+. The positive relationship between age and HCE observed in cross-sectional data may be caused by the simple fact that at age 80, for example, there are many more individuals living in their last 2 years than at age 65. The limited impact of age on HCE suggests that population ageing may contribute much less to future growth of the health care sector than claimed by most observers.
Original languageEnglish
JournalHealth Economics
Volume8
Issue number6
Pages (from-to)485-496
Number of pages12
ISSN1057-9230
DOIs
Publication statusPublished - 01.09.1999
Externally publishedYes

Bibliographical note

Swiss National Science Foundation. Grant Number: 4032‐035660

    Research areas

  • Health sciences - population ageing, cost of dying, aggregate health care expenditure

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