Examining the heterogeneous effect of healthcare expenditure determinants
by Tiffany Hui-Kuang Yu, David Han-Min Wang, Li-Ying Chang
International Journal of Behavioural and Healthcare Research (IJBHR), Vol. 2, No. 3, 2011

Abstract: To shed light on the issue of the black box of healthcare expenditure growth determinants, this study performs quantile regression analysis on examining the heterogeneous effect of healthcare expenditure determinants in Taiwan and the OECD countries. A total of 25 countries are studied over a period from 1992 to 2007. The results show that income, elderly populations, and number of physicians have significant positive effects on long-term healthcare expenditures. The income elasticity of healthcare expenditure lies between 1.20 and 1.47, which indicates that healthcare is a luxury good. And, income elasticity increases in higher quantiles of healthcare expenditures. However, the effects of elderly populations and number of physicians are decreasing towards the higher quantiles of healthcare expenditures.

Online publication date: Tue, 30-Sep-2014

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