Carla Blázquez-Fernández

Disentangling the heterogeneous income elasticity and dynamics of health expenditure

In this article, we empirically study the impact of per capita income on health-care expenditure and its dynamics over time in a sample of 14 OECD countries for the period 1971 to 2009. A simple model, built upon one developed by Newhouse (1977), suggests that health care is a necessity in the short run but it cannot be rejected to be a luxury good in the long run. Our findings provide strong empirical evidence that a year’s health expenditure is conditioned by the previous one. Interestingly, our results reveal increasing income inelasticity over time along with huge heterogeneity across countries. Finally, this article supports the hypothesis of conditional convergence in health-care spending among countries. In designing policies which facilitate the sustainability of national health systems, we emphasize that ceteris paribus the greater the participation of public health, the lower the growth rate of health spending. High share of children and elderly over working age population opposite influences. We also provide evidence that technological progress could reduce the long-run income elasticity for health care, which in turn threaten the sustainability of health-care systems.

Health expenditure and socio-economic determinants of life expectancy in the OECD Asia/Pacific area countries

ABSTRACT Recent economic research is focused on the study of the relationship between socio-economic factors and health outcomes. In this study, the relationship in the OECD Asia/Pacific area countries regarding life expectancy is explored. Data from the World Bank and OECD Health Statistics (2015) have been used to build a panel data during the period 1995–2013. On the one hand, it was found that per capita income, unemployment and exchange rates improve health outcomes. On the other hand, poor performance, in terms of government expenditures for the countries-sample, comes across. Empirical results highlight the importance of cost-effectiveness analysis.

Does early-life health enhance growth? Evidence from Spain

This article focuses on the causal effect of early-life health on economic growth for the Spanish regions over the period 1980–2007. The hypothesis follows from recent literature, in which mortality affects growth by diminishing incentives for behaviour with short-run costs and long-run pay-offs. We provide empirical evidence that higher infant mortality has a direct negative impact on per capita income growth. Also, that a greater risk of early-life death is associated with losses on accumulation of both physical and human capital, and fertility gains, which in turn more even reduces growth.

Social isolation and multiple chronic diseases after age 50: A European macro-regional analysis

Background Different studies have found that socioeconomic determinants influence the prevalence of chronic diseases in older people. However, there has been relatively little research on the incidence of how social isolation may affect them. We suggest that social isolation is a serious concern for people living with chronic illnesses. Method In this paper, we examine whether there is an increase in the propensity of being diagnosed with chronic illnesses because of a decrease in social relations for elderly Europeans. We have used a panel data for Waves 1–6 (2004–2015) of Survey on Health, Ageing and Retirement in Europe (SHARE) and logistic regressions. Besides, we have studied three geographic macro-areas (Nordic, Continental and Southern). Being diagnosed with three or more chronic diseases is considered as a dependent variable, and as social control variables we have used three isolation proxies (living alone, providing help to family, friends or neighbours and participation-club activities). Other socio-demographic variables are included (gender, age, educational level, job situation, area of location and quality of life). Results Our results for the full sample indicate that people who participate in social activities have fewer probability of suffering from chronic diseases (OR = 0.70, 95% CI 0.54, 0.92). For people who live alone the reverse effect is observed (OR = 1.20, 95% CI 1.04, 1.39). Differences are shown by macro-areas, e.g. providing help (OR = 0.58, 95% CI 0.34, 0.97) isolation proxy is significant for the Nordic macro-area. Club-participation activities and living alone are significant for Continental and Southern macro-areas, respectively (OR = 0.65, 95% CI 0.55, 0.82; OR = 1.46, 95% CI 1.21, 1.77). Conclusions Social isolation increases the risk of being diagnosed with chronic illnesses. That is, people with greater social participation have lower risk of suffering from multiple chronic diseases. This risk linked to isolation, together with the traditional one associated with lifestyles, should be considered in the development of new public policies.

On the nexus of air pollution and health expenditures: new empirical evidence

OBJECTIVE To analyse the impact of per capita income and environmental air quality variables on health expenditure determinants. METHOD In this study, we analyse the relationship between air pollution and health expenditure in 29 OECD countries over the period 1995-2014. In addition, we test whether our findings differ between countries with higher or lower incomes. RESULTS The econometric results show that per capita income has a positive effect on health expenditure, but is not as statistically significant as expected when lag-time is incorporated. In addition, an anchorage effect is observed, which implies that about 80%-90% of previous expenditure explain current expenditure. Our empirical results are quite consistent between groups and when compared with the full sample. Nevertheless, there appear to be some differences when broken down by financing scheme (total, public, and private). CONCLUSIONS Overall, our findings could be used to clarify the appropriate health expenditure level or to obtain better environmental quality and social well-being. That is, empirical support is provided on how health management and policy makers should include more considerations for the use of cleaner fuels in developed countries.

Understanding the direct and indirect costs of a first episode of psychosis program: Insights from PAFIP of Cantabria, Spain, during the first year of intervention

Early intervention psychiatric services for patients with psychosis aim to limit the most damaging outcomes and reduce the patients risk of social drift, decreasing illness severity and thus containing healthcare costs. There is a scarcity of studies that focus on first‐episode psychosis (FEP), and those few that have been published only looked at direct health costs, but not at indirect costs, which make up the bulk of the budget.

Is pharmaceutical expenditure related to the business cycles

ABSTRACT Recent research is focused on the study of health care expenditure and fiscal sustainability. In order to facilitate the understanding of this issue, we centre our interest on the Spanish pharmaceutical expenditure. Specifically, using data for the period 1995–2012, in the article we analyse if economic cycles affect pharmaceutical expenditures. Our results support that there is a positive relationship between pharmaceutical expenditure and economic development. Therefore, we conclude that pharmaceutical expenditures are pro cyclical over the last years.