Healthcare Expenditure in OECD Countries

The following econometric term paper forms the basis of a working paper currently underway. 

Health Care Expenditure

Abstract: Expenditure on health care services currently accounts for an enormous proportion of annual GDP in most OECD countries. Yet, the effects of the aggregate factors that determine it, such as demographic composition of a country, federal health care provisions and national income itself are largely disputed. This study examines time series and fixed effects longitudinal estimates of these variables across the US, UK, Japan and Australia. Findings are indeed contentious regarding income elasticity and whether healthcare can be classified as a normal good or luxury good. Moreover, the increasing size of the aging population appears increase health care spending. In aggregate, the amount of public financing is negatively related to health care expenditure.