This note analyzes levels and trends ofhealth expenditures by country, income group, and region inthe context of overall government revenue, expenditure, andGDP trends between 1995 and 2010. The study uses availabledata from the World Health Organization's (WHO)National Health Accounts, the International MonetaryFund's (IMF) fiscal data bases, and the WorldBank's World Development Indicators. The paper providessnapshots of health financing patterns, both public andprivate, at different points in time, as well as analyzingthe stability of these relationships and tracing theirevolution during this period. In general, there is littlevariation in the average income elasticity's of total,government, and out-of pocket (OOP) health spending byincome level or region. The elasticity's of governmenthealth spending to total government expenditures andrevenues exhibit more variation across both income groupsand region than the income elasticity. Controlling fordemographics moderately reduces the magnitude of theseestimates. Many elasticity estimates are close to one,indicating the importance of income as a driving forcebehind health spending. Some countries exhibit fluctuationsin the income elasticity of government health spending butmany have increasing elasticity's over the 1995 to 2010period. These trends highlight the simple macro-fiscalcontext for health spending, and flag situations thatrequire more in-depth analyses as countries struggle withthe fiscal sustainability of their health systems,particularly as they pursue universal insurance coverage andsignificant supply side expansions.
PDF
download
878987797
028-85220240
