WHAT DRIVES HEALTHCARE EXPENDITURE GROWTH? EVIDENCE FROM CENTRAL AND EASTERN EUROPEAN ECONOMIES

• Authors: Konatar Milena , Kaštelan Snježena , Kaštelan Uršula , Đurašković Jovan , Radović Milivoje
• Languages of publication: EN

Abstracts

EN

The aim of this paper is to examine the determinants of healthcare expenditure in Central and Eastern Europe (CEE) countries. The study covers the period between the years 2000 and 2018. In our research, we implement error correction based on an autoregressive distributed lag (ARDL) model, with focus on the Pooled Mean Group (PMG) estimator. Our estimation results revealed that, in combination, health spending, income, medical progress, population ageing and fiscal capacity together form a statistically significant and stable long-term economic relationship. Our analysis indicates that healthcare spending responds to both short-term and long-term income changes. The obtained results support the prevailing view that health should not be considered a luxury good with income elasticity close to unity. In the long term, medical progress and population ageing also significantly influence health spending, whilst these variables prove to be insignificant over the short term. Ultimately, government capacity is positively related to health spending dynamics.

Keywords

EN

HEALTHCARE EXPENDITURES; CEE COUNTRIES; ARDL MODELLING; INCOME

• Publisher: Institute of Slovak and World Economics and Institute for Forecasting, Slovak Academy of Sciences
• Journal: Ekonomický časopis (Journal of Economics)
• Year: 2021
• Volume: 69
• Issue: 7
• Pages: 750 – 765

Contributors

author

Konatar Milena

• Faculty of Economics, University of Montenegro, 37 Bulevar Jovana Tomaševića, 81000 Podgorica, Montenegro

author

Kaštelan Snježena

author

Kaštelan Uršula

author

Đurašković Jovan

author

Radović Milivoje

Identifiers

DOI

https://doi.org/10.31577/ekoncas.2021.07.05