The effect of health expenditures on life expectancy; A case of OECD countries

Abstract

This study was undertaken to investigate the effect of health expenditures per capita in OECD countries on the life expectancy. The analyzes included health expenditures per capita between the years 2000-2016 of 36 member countries of the OECD and life expectancy periods. The data were analyzed according to the panel data analysis method. In terms of per capita health spending between the years 2000-2016 has been determined that Turkey is the last rank country between the OECD members. In addition, in terms of life expectancy, it was observed that it was in 34th place after Latvia and Lithuania. As a result of the panel regression analysis, it was calculated that 1 standard point increase in health expenditures per person caused an increase in life expectancy by 0.329 point. Results was show that, in terms of health expenditure per capita and life expectancy Turkey is behind the OECD members countries . It has been determined that the health expenditures per capita have an effect on the life expectancy and shows a significant variation in the long term. It is stated that investment and expenditures need to increase in the field of health.

Keywords

• Health expenditure per capita,life expectancy,OECD,Panel Data Analysis

Sağlık harcamalarının yaşam beklentisine etkisi; OECD ülkeleri örneği

Abstract

Bu çalışma, OECD ülkeleri için kişi başına düşen sağlık harcamalarının yaşam beklenti süresi üzerindeki etkisini araştırmak amacıyla yapılmıştır. Analizlere OECD’ye üye 36 ülkenin 2000-2016 yılları arasındaki kişi başına düşen sağlık harcamaları ve yaşam beklenti süreleri dahil edilmiştir. Derlenen veriler panel veri analizi yöntemine göre analiz edilmiştir. 2000-2016 yılları arasında kişi başına sağlık harcaması açısından, Türkiye'nin OECD üyeleri arasında son sırada olduğu tespit edilmiştir. Ayrıca yaşam beklenti süresi açısından Letonya ve Litvanya’dan sonra 34. sırada olduğu görülmüştür. Yapılan panel regresyon analizi sonucunda, kişi başına sağlık harcamalarında meydana gelen 1 standart birimlik artışın yaşam beklentisinde 0,329 birimlik artışa neden olduğu hesaplanmıştır. Sonuçlar, Türkiye’nin kişi başına düşen sağlık harcaması ve yaşam beklenti süresi açısından OECD ülkelerinin gerisinde olduğunu göstermiştir. Kişi başına düşen sağlık harcamalarının yaşam beklenti süresi üzerinde etkili olduğu ve uzun dönem içinde birlikte anlamlı bir değişkenlik gösterdiği saptanmıştır. Sağlık alanında yatırım ve harcamaların artması gerektiği yönünde görüş bildirilmiştir.

Keywords

• OECD,Kişi başına düşen sağlık harcaması,Yaşam beklenti süresi,Panel veri analizi

References

1. Alemayehu, B., & Warner, K. E. (2004). The lifetime distribution of health care costs. Health services research, 39(3), 627-642.
2. Arrow, K., Auerbach, A., Bertko, J., Brownlee, S., Casalino, L. P., Cooper, J., ... & Fuchs, V. R. (2009). Toward a 21st-century health care system: recommendations for health care reform. Annals of Internal Medicine, 150(7), 493-495.
3. Bloom, D. E., Canning, D., & Sevilla, J. (2004). The effect of health on economic growth: a production function approach. World development, 32(1), 1-13.
4. Breyer, F., & Felder, S. (2006). Life expectancy and health care expenditures: a new calculation for Germany using the costs of dying. Health policy, 75(2), 178-186.
5. Chetty, R., Stepner, M., Abraham, S., Lin, S., Scuderi, B., Turner, N., ... & Cutler, D. (2016). The association between income and life expectancy in the United States, 2001-2014. Jama, 315(16), 1750-1766.
6. De Nardi, M., French, E., & Jones, J. B. (2009). Life expectancy and old age savings. American Economic Review, 99(2), 110-15.
7. Djellal, F., & Gallouj, F. (2007). Innovation in hospitals: a survey of the literature. The European Journal of Health Economics, 8(3), 181-193.
8. Fitzpatrick, R., Fletcher, A., Gore, S., Jones, D., Spiegelhalter, D., & Cox, D. (1992). Quality of life measures in health care. I: Applications and issues in assessment. Bmj, 305(6861), 1074-1077.

9. Fuchs, V. R. (1996). Economics, values, and health care reform. American Economic Review, 86(1), 1-24.
10. Goldman, D. P., Shang, B., Bhattacharya, J., Garber, A. M., Hurd, M., Joyce, G. F., ... & Shekelle, P. G. (2005). Consequences Of Health Trends And Medical Innovation For The Future Elderly: When demographic trends temper the optimism of biomedical advances, how will tomorrow's elderly fare?. Health Affairs, 24(Suppl2), W5-R5.
11. Gujarati, D. N. (2009). Basic econometrics. Tata McGraw-Hill Education..
12. Halfon, N., & Hochstein, M. (2002). Life course health development: an integrated framework for developing health, policy, and research. The Milbank Quarterly, 80(3), 433-479.
13. Hall, R. E., & Jones, C. I. (2007). The value of life and the rise in health spending. The Quarterly Journal of Economics, 122(1), 39-72.
14. Hsieh, C. T., & Liu, B. C. (1983). The pursuance of better quality of life: In the long run, better quality of social life is the most important factor in migration. American Journal of Economics and Sociology, 42(4), 431-440.
15. Judge, K. (1995). Income distribution and life expectancy: a critical appraisal. Bmj, 311(7015), 1282-1285.
16. Lee, J. C. (2003). Health care reform in South Korea: success or failure?. American journal of public health, 93(1), 48-51.
17. Lubitz, J., Cai, L., Kramarow, E., & Lentzner, H. (2003). Health, life expectancy, and health care spending among the elderly. New England Journal of Medicine, 349(11), 1048-1055.
18. Lundberg, G. D. (1992). National health care reform: the aura of inevitability intensifies. JAMA, 267(18), 2521-2524.
19. Mackenbach, J. P. (2002). Income inequality and population health: evidence favouring a negative correlation between income inequality and life expectancy has disappeared.
20. Messias, E. (2003). Income inequality, illiteracy rate, and life expectancy in Brazil. American Journal of Public Health, 93(8), 1294-1296.
21. Morand, O. (2004). Health and the process of economic development. Progress in Economic Research, 7, 39-60.
22. Murphy, K. M., & Topel, R. H. (2003). The economic value of medical research. Measuring the gains from medical research: An economic approach, 15(30), 125-146.
23. Normand, C. (1991). Economics, health, and the economics of health. BMJ: British Medical Journal, 303(6817), 1572.
24. Ringard, Å., Sagan, A., Saunes, I. S., & Lindahl, A. K. (2014). Norway: Health system review. Health Systems in Transition. Health Systems in Transition.
25. Rogot, E., Sorlie, P. D., & Johnson, N. J. (1992). Life expectancy by employment status, income, and education in the National Longitudinal Mortality Study. Public health reports, 107(4), 457.
26. Saltman, R. B., & Figueras, J. (1998). Analyzing The Evidence On European Health Care Reforms: Experience in western European health care systems suggests lessons for reform in the United States, according to a major international comparison by the World Health Organization. Health affairs, 17(2), 85-108.
27. Scheffler, R. M., & Brown, T. T. (2008). Social capital, economics, and health: new evidence. Health Economics, Policy and Law, 3(4), 321-331.
28. Schneider, E. L., & Guralnik, J. M. (1990). The aging of America: impact on health care costs. Jama, 263(17), 2335-2340.
29. Schwartz, W. B., & Aaron, H. J. (1998). Life without disease: The pursuit of medical utopia (pp. 92-4). Berkeley: University of California Press.
30. Sen, A. (2002). Why health equity?. Health economics, 11(8), 659-666.
31. Seshamani, M., & Gray, A. (2004). Time to death and health expenditure: an improved model for the impact of demographic change on health care costs. Age and Ageing, 33(6), 556-561.
32. Shang, B., & Goldman, D. (2008). Does age or life expectancy better predict health care expenditures?. Health Economics, 17(4), 487-501.
33. Sintonen, H. (2001). The 15D instrument of health-related quality of life: properties and applications. Annals of medicine, 33(5), 328-336.
34. Wilkinson, R. G. (1992). Income distribution and life expectancy. BMJ: British Medical Journal, 304(6820), 165.
35. Zhang, B., Wright, A. A., Huskamp, H. A., Nilsson, M. E., Maciejewski, M. L., Earle, C. C., ... & Prigerson, H. G. (2009). Health care costs in the last week of life: associations with end-of-life conversations. Archives of internal medicine, 169(5), 480-488.
36. Zweifel, P., Felder, S., & Meiers, M. (1999). Ageing of population and health care expenditure: a red herring?. Health economics, 8(6), 485-496.